What is 'Free Cash Flow - FCF'?

Modified on Tue, 19 Jun 2018 at 12:31 PM

Free cash flow (FCF) represents the cash that a company is able to generate after required investment to maintain or expand its asset base. It is a measurement of a company's financial performance and health. There are two types of free cash flow: Free Cash Flow for the Firm (FCFF) and Free Cash Flow to Equity (FCFE). This item focuses on Free Cash Flow to the Firm (FCFF), otherwise understood as free cash flow or FCF.

Source : Investopedia

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