Free Cash Flow

Published: 11 April 2022
on channel: FST Study
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Free Cash flow is what a company has after paying off its operating expenses and capital expenditures. After earning money, a company has to pay off its normal business expenses like the rent, the salaries, etc. These are the operating expenses that because it is needed for the main business operation.
Then you also have to pay for the maintenance and upkeep of the equipments, plants, and other investments in other fixed assets. These are your capital expenditures.
So, free cash flow will be whatever the cash is flowing after you have paid for operating expenses and capital expenditures.

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