Free Cash Flow (FCF): Cash generated from operations minus capital expenditures.
Also known as: FCF
Formula
FCF = Operating cash flow - Capital expendituresWhat It Tells You
Cash available for growth, debt repayment or distribution.
Related Metrics
Connected in the GASP relationship graph.
Upstream: what drives this
- Gross Margin drives Free Cash Flow (Core)
- Operating Margin drives Free Cash Flow (Finance)
- Cash Burn Rate reduces Free Cash Flow (Finance)
- Days Sales Outstanding reduces Free Cash Flow (RevOps)
Downstream: what this drives
- Free Cash Flow measures Subscription (Entity)