Short Description
Free Cash Flow (FCF) is the cash left over after a company covers both its day-to-day operating expenses and its capital expenditures. It’s calculated as Operating Cash Flow (OCF) minus CAPEX, and reflects how much true surplus cash the business generates. Unlike OCF — which doesn’t account for long-term investments — FCF gives a clearer picture of how much discretionary cash is available for things like dividends, debt repayment, or building cash reserves.