How to Calculate Free Cash Flow for Your Business
Fundera
MAY 27, 2020
Free Cash Flow Definition. Free cash flow is the amount of cash you have available—after you pay your operating and capital expenses—from the income your business produces from operations. You can calculate this number by using the free cash flow formula: Net Cash Flow From Operations – Capital Expenditures = Free Cash Flow. Having a good free cash flow number proves you have a healthy business which is likely to yield a nice return on investment.
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