Cash Flow Analysis
Free Cash Flow
Definition
What is Free Cash Flow?
Cash remaining after operating cash flowCash generated or used by a company's core operations. and necessary capital expenditureMoney spent to acquire or improve long-term assets., under the stated definition.
Example in practice
How This Looks in Practice
₦800 million operating cash flow less ₦300 million capital expenditure gives ₦500 million free cash flow.
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Related Terms
Cash Flow Analysis
Operating Cash Flow
Cash generated or used by a company's core operations.
Cash Flow AnalysisInvesting Cash Flow
Cash used for or received from buying and selling long-term assets and investments.
Cash Flow AnalysisFinancing Cash Flow
Cash flows arising from debt, equity, dividends, and other financing transactions.
ValuationMarket Value
The price at which an asset could trade in the market at a given time.