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What is the free cash flow?

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Question added by Mohamed El Machichi , Purchase Manager , Berkat Madinah Trading Sdn.Bhd
Date Posted: 2013/06/24
هبه باوزير
by هبه باوزير , محاسب عام , مركز طفلي الاول

cash flow that is free and available to be distributed to the firm’s investors.
It is obtained after a firm has paid off all its operating expenses, taxes, and made all of its investments in operating working capital and assets.
once the firm has paid all of its operating expenses and taxes and made all of its investments , the remaining cash flows are free to be distributed to the firm's creditors and shareholders.

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

Operating cash flows (net income plus amortization and depreciation) minus capital expenditures and dividends. Free cash flow is the amount of cash that a company has left over after it has paid all of its expenses, including investments.

Free cash flow (FCF) is a measure of how much cash a business generates after accounting for capital expenditures such as buildings or equipment.
This cash can be used for expansion, dividends, reducing debt, or other purposes

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