Free Cash Flow Flashcards
What is FCF?
Cash produced by a company through its operations - cost of expenditures
Cash produced by a company through its operations - cost of expenditures
What is FCF?
What is cash left over in FCF?
The cash left after a company pay its operating expenses and capital expenditures.
The cash left after a company pay its operating expenses and capital expenditures.
What is cash left over in FCF?
What does FCF Show?
How efficient a company is at generating cash and is an important metric in determining whether a company has sufficient cash to reward shareholders
How efficient a company is at generating cash and is an important metric in determining whether a company has sufficient cash to reward shareholders
What does FCF Show?
How are shareholders rewarded?
Through dividends and share buybacks. After funding operations and capital expenditures
Through dividends and share buybacks. After funding operations and capital expenditures
How are shareholders rewarded?
What does increasing FCF typically precede?
Increased earnings
Increased earnings
What does increasing FCF typically precede?
What happens when a company’s share price is low and FCF is on the rise?
Odds are good that earnings and value of shares will soon head up
Odds are good that earnings and value of shares will soon head up
What happens when a company’s share price is low and FCF is on the rise?
