Definition

Free cash flow (FCF) is a measure of an organization’s money-related execution, calculated as working income fewer capital uses. FCF speaks to the money that an organization can create subsequent to spending the cash required to keep up or extend its benefit base. FCF is important because it enables an organization to seek after circumstances that improve investor esteem.

Brief Explanation of  Free cash flow

Ultimately, FCF is a measure of money that the organization creates after all capital expenditures, such as property and equipment. The extra money helps in expanding production, growing new items, acquiring, paying profits, and lowering obligations.