Operating cash flow ( net income plus amortization and depreciation) minus capital expenditures and dividends.
Cash flow after all positive-NPV projects have been exhausted in the firm's main line of business.
Specific indicator in the cash flow statement. Free cash flow is calculated from the cash flow from operating activities and cash flow from investing activities. Calculation of net free cash flow takes into account interest received and paid and changes in pension provisions and plan assets.
equals EBITDA minus net interest expense, capital expenditures, change in working capital, taxes paid, and other cash items (net other expenses less proceeds from the disposal of obsolete and/or substantially depleted operating fixed assets that are no longer in operation).
The cash flow of a firm, less any capital expenditures.
Operating cashflow less payments to providers of finance, taxation, capital expenditures and non-operating non-cash items.
EBITDA less net financial expenses, capitalized interests expenses, capital expenditures, paid taxes, changes in net operating working capital, inflation adjustments and foreign exchange adjustments.
A stock analyst's term with a definition that varies somewhat depending on the particular analyst. It usually approximates operating cash flow minus necessary capital expenditures. It is, in general, supposed to measure how much cash a company has left over after making payments necessary to maintain normal operations.
Calculated as operating cash flow, minus net interest costs, investments in fixed assets, changes in working capital, taxes paid, preferential capital dividends and other cash outlays (other net costs minus sales of non-operative assets). Free cash flow is not an indicator that is used under generally accepted accounting principles.
Equals EBITDA less net capital expenditure less increases in the company's working capital less tax paid for the period. It is widely used as a measure of the company's operating strength and the ability of its businesses to fund the repayment of debts, expansion and dividend/capital returns to shareholders.
While there is no formal definition of free cash flow, it is reasonable to describe it as the remaining cash flow from operations after debt servicing, tax payment and capital expenditure.
Cash flow from operating activities less intangible and tangible fixed assets acquired.
Free cash flow measures a firm's cash flow remaining after all expenditures required to maintain or expand the business, including interest payments as well as investments in assets used to maintain or expand the business (including but not limited to those described as "property, plant and equipment" or "PP&E").
net income plus depreciation minus the total of dividends, capital expenditures, required debt repayments, and any other scheduled cash outlays.
cash provided by operations less cash used in business reinvestment. The Company uses free cash flow along with borrowings to pay dividends, make share repurchases and make acquisitions.
Generally, the cash available to distribution to a company's investors or lenders (equity and debt), defined as net income from operations plus non-cash charges (such as depreciation) plus or minus the cash used by or freed by the business as indicated in balance sheet changes (such as capital expenditures and increases in working capital).
net cash inflow from operating activities less capital expenditure to maintain operations
Net cash from operating activities, less net cash used in investing activities
The cash flow available to a company after financing all worthwhile investments; defined as operating income after tax plus depreciation less investment. The presence of large free cash flows is said to be attractive to a corporate raider.
Investors such as Warren Buffett prefer a more demanding figure for calculating a company's cash flow. They add back depreciation to after-tax profits but also deduct the capital expenditure necessary to maintain the company's business. The money then remaining is called free cash flow and is available either for investment in additional assets to produce growth or for distribution to shareholders.
Cash resources available for payment of dividends to shareholders and for acquisitions.
The cash generated by a business that is left over after the prior claims needed to keep the business running have been met.
Net cash inflow from operating activities less stay-in-business capital expenditure.
cash flow to a firm in excess of that required to fund all projects that have positive net present values when discounted at the relevant cost of capital. Free cash flow can be a source of principal-agent conflict between shareholders and managers, since shareholders would probably want it paid out in some form to them, and managers might want to control it, e.g. to use it for unprofitable projects, for perquisites, to make acquisitions, to create jobs for friends and allies, and so forth. A possible partial solution to the conflict for the shareholders is for the company to have heavy debts on which frequent, heavy payments are due. Those payments keep the managers focused on delivering consistent revenues and clear out the extra cash. Source: econterms
We discourage the use of this term. See NET CASH FLOW.
Cash available for distribution to owners after taxes but before the effects of financing. Calculated as net income, plus depreciation and amortization, plus interest expense, less required capital expenditures and changes in working capital.
Cash not required for operations or for reinvestment. Free cash flow is calculated by subtracting capital expenditures from cash flow. Capital expenditures include the purchase of new plant, property and equipment. Free cash flow can be used to pay dividends, buy back stock or pay off debt. The more the better.
Cash provided by operations less cash used in investing activities. The Company uses free cash flow along with borrowings to pay dividends and make share repurchases.
The cash flow from operating activities (To learn more, see Explanation of Cash Flow Statement.) minus the amount of capital expenditures. Other variations are also used. To Top
Free Cash Flow is calculated as net cash provided by operating activities minus capital expenditures. It indicates a company's level of financial flexibility. Free cash flow = Operating profit - income tax + depreciation - capital expenditures +/- changes in working capital
The cash that's left over after everything -- bills from suppliers, salaries, new equipment to expand the business -- is said and done. Theoretically, free cash flow is the amount of cash a business could issue to shareholders in the form of a dividend check.
Cash flow from operations less investments (capital expenditures) and taxes.
The cash flow of a company available to service the capital structure of the firm. Typically measured as operating cash flow less capital expenditures and tax obligations.
Cash available to pay to owners and lenders, calculated by subtracting Dividends and After Tax Interest from Net Cash Flow for a period.
Free cash flow is derived directly from the statement of cash flows as follows: Cash from operating activities less capital expenditures, and other investing activities less common and preferred dividends. Free cash flow may be expressed before or after common dividends.
Free cash flow is the amount of cash generated by the business after meeting all its obligations for interest, tax and dividends and after all capital investment, excluding share sales or purchases by the Employee Trust.
A measure of how much cash a company has after paying its bills for ongoing activities and growth.
Free cash flow measures a firm's net increase in