Calculate the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.
Cash Sources & Uses
Formula: FCF = Operating Cash Flow - Capital Expenditures
Cash Flow Summary
Free Cash Flow$350,000Distributable Cash
Cash Generation Bridge
About this calculator
Overview
Calculate the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.
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Pro Tips
What is Free Cash Flow?: FCF is the cash remaining after a company pays for its operating expenses and capital expenditures. It's essentially the 'disposable income' of a corporation.
Why is FCF better than Net Income?: Net income includes non-cash items (like depreciation) and doesn't account for the cash spent on new equipment. FCF provides a clearer picture of actual cash availability.
What can a company do with FCF?: A company can use FCF to pay dividends, buy back shares, acquire other businesses, pay down debt, or keep it as a 'rainy day' fund.
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Fun Facts
"Growth companies often have negative FCF because they are reinvesting every dollar (and more) back into the business."
"Consistently high FCF is often a sign of a 'cash cow'—a mature, stable business with a dominant market position."
"Investors often look at 'FCF Yield' (FCF per share / Stock Price) to find undervalued companies."
