// definition
FCF
Free cash flow
Short definition
A cash measure often calculated as operating cash flow less capital expenditure. Definitions vary by issuer, so the included items and reconciliation to the accounts must be checked. It is neither accounting profit nor necessarily cash freely available for debt repayment or shareholder distributions.
risk atlas
Knowledge map
Intuition
Profit and cash follow different calculations and timetables.
Related analyses
- JLR: when the factory stopsThe manufacturer’s definition, investment and operating working capital movements.
Primary sources
- SEC, Non-GAAP Financial Measures, question 102.07Common free cash flow calculation, lack of a uniform definition and reconciliation to the accounts.