Free cash flow, or FCF
Free cash flow, or FCF, measures a company's financial performance and shows their ability to generate cash after spending on capital expenditures for property, buildings, or equipment needed to grow their business. FCF represents the cash available to support growth, pay dividends, and reduce debt. The formula is:
Positive FCF indicates that a company has enough cash to meet obligations and potentially grow, while negative FCF may indicate financial challenges or even trouble.
We acknowledge and thank the FMA, Dr Karena Kelly and Brook Taurua Grant, the RBNZ and the Māori Dictionary for their research which helped us with te Reo Māori kupu for this glossary.
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