Company Health

What is Free Cash Flow?

Actual cash left after all expenses

Full Explanation

Free cash flow is the real money a company generates after paying for everything. Profitable on paper but negative free cash flow = potential red flag.

Pro Tip

Warren Buffett focuses heavily on free cash flow.

Related Company Health Terms

Operating Income

Profit from the core business before taxes and interest

P/E Ratio

How expensive a stock is compared to its profits

Profit Margin

What percentage of revenue becomes actual profit

Analyst Consensus

The average opinion of professional stock analysts

View all Company Health terms →

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