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Financial statements
Also called: FCF
Free cash flow is the cash a business generates from its operations minus what it spends on plant, equipment and other capital assets. It is the cash left that could pay dividends, repay debt or fund growth.
Free cash flow = Cash from operations − Capital expenditure
A company generated ₹400 crore of cash from operations and spent ₹150 crore on new machinery. Its free cash flow is ₹250 crore.
It is the money genuinely available to repay debt, pay dividends, or expand — none of which can be done with accounting profit.
Persistently negative free cash flow means growth is being funded by someone else's money.
Free cash flow is the cash a business generates from its operations minus what it spends on plant, equipment and other capital assets. It is the cash left that could pay dividends, repay debt or fund growth.
Free cash flow = Cash from operations − Capital expenditure. A company generated ₹400 crore of cash from operations and spent ₹150 crore on new machinery. Its free cash flow is ₹250 crore.
No. Free cash flow describes one aspect of a company, a price or a contract, and it is best read alongside other numbers and the business itself. Jivani Markets is a research and education platform; it does not give buy, sell or hold recommendations.