Free cash flow, abbreviated as FCF, is how much cash a business generates after capitol expenditures during a given period of time.
free cash flow Formula |
| \large{ FCF = NI + NCC - WC - CapEx } |
| Symbol |
| \large{ FCF } = free cash flow |
| \large{ CapEx } = capital expenditure |
| \large{ WC } = change in working capitol |
| \large{ NI } = net income |
| \large{ NCC } = non-cash charges |
