Q » How do you calculate a company's free cash flow?

John

17 Oct, 2025

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A » To calculate a company's free cash flow, subtract capital expenditures from operating cash flow. This measure helps assess financial health by showing how much cash is available after maintaining or expanding assets. Formula: Free Cash Flow = Operating Cash Flow - Capital Expenditures. It provides insights into the company's ability to generate cash, fund growth, pay dividends, reduce debt, and adjust to economic challenges.

Justin

17 Oct, 2025

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A »To calculate a company's free cash flow, subtract capital expenditures from operating cash flow. The formula is: Free Cash Flow = Operating Cash Flow - Capital Expenditures. This metric indicates the cash available after maintaining or expanding asset base, aiding in financial health assessment and investment potential. It’s essential for evaluating a company's ability to generate cash and support growth, dividends, or debt reduction.

Daniel

17 Oct, 2025

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A »To calculate a company's free cash flow, start with its operating cash flow, then subtract capital expenditures. For example, if a company has an operating cash flow of $100 million and capital expenditures of $30 million, its free cash flow would be $70 million ($100 million - $30 million), indicating the cash available for debt repayment, dividends, or reinvestment.

Christopher

17 Oct, 2025

0 | 0

A »To calculate a company's free cash flow, subtract capital expenditures from operating cash flow. The formula is: Free Cash Flow = Operating Cash Flow - Capital Expenditures. This metric indicates the cash a company generates after spending on assets, which can be used for expansion, dividends, or reducing debt.

Joseph

17 Oct, 2025

0 | 0

A »To calculate a company's free cash flow, subtract capital expenditures from operating cash flow. The formula is: Free Cash Flow = Operating Cash Flow - Capital Expenditures. This metric indicates a company's ability to generate cash for investors, debt repayment, or further investment, providing insight into its financial health and growth potential.

Asmes

17 Oct, 2025

0 | 0

A »To calculate a company's free cash flow (FCF), subtract capital expenditures from operating cash flow. For example, if a company has an operating cash flow of $500,000 and spends $150,000 on capital expenditures, its FCF is $350,000. FCF indicates the cash available for expansion, dividends, or debt repayment. It's a vital measure of financial health and operational efficiency, helping investors assess how well a company generates cash beyond its operational costs.

James

17 Oct, 2025

0 | 0

A »To calculate a company's free cash flow, subtract capital expenditures from operating cash flow. The formula is: Free Cash Flow = Operating Cash Flow - Capital Expenditures. This metric indicates a company's ability to generate cash for investors, debt repayment, or further investment.

David

17 Oct, 2025

0 | 0