Free Cash Flow, often abbreviate FCF, is an efficiency and liquidity ratio that calculates the how much more cash a company generates than it uses to run and expand the business by subtracting the capital expenditures from the operating cash flow. In other words, this is the excess money a business produces after it pays all of its operating expenses and CAPEX. This is an important concept because it shows how efficient the business is at generating cash and if it can pay its investors a return after it funds its operations and expansions. FCF is an important measurement since it shows how efficient a company is at generating cash. Investors use free cash flow to measure whether a company might have enough cash, after funding operations and capital expenditures, to pay investors through dividends and share buybacks.in corporate finance free vash flow is a way of looking at a business’s cash flow to see what is available for distribution among all the securities holders of a corporate entity. FCF is the amount of cash that a company cabn put aside after it has paid all of its expenses at the end of an accounting periode. It is often evaluated on a per share basis to evaluate the effect of dilution. Reveal a problem in the fundamentals before they arise on the income statement.
CITATION STYLE
Murifal, B. (2020). Free Cash Flow Analysis Indikator Bagi Investor dalam Mengukur Pertumbuhan Keuangan Perusahaan. Ekonomis: Journal of Economics and Business, 4(2), 279. https://doi.org/10.33087/ekonomis.v4i2.157
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