Measures the cash a company generates after capital expenditures, available for debt repayment or reinvestment.
What it Measures ?
How much cash is left after paying for major assets.
Relevant StakeHolders
CFO, Investors, Finance Manager
In-depth Use Case / Real-world Example
Free Cash Flow is calculated by subtracting capital expenditures from operating cash flow. For example, if operating cash flow is ₹500,000 and capital expenditures are ₹100,000, the free cash flow is ₹400,000. This metric is vital for assessing a company’s ability to invest in growth, pay dividends, or reduce debt.
KPI Definition
Business Value
Movement Direction
Sample Formula
Net Cash Flow from Operations - Capital Expenditures
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