Result
Free Cash Flow
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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.
How it is calculated
FCF = operating cash flow − capital expenditures. It's the cash a business earned and can spend freely — paying down debt, distributing dividends, buying back shares, or funding new projects — without giving up its ability to maintain current operations.
FCF differs from net profit in a fundamental way: profit is an accounting figure that includes non-cash items (like depreciation) and ignores how much cash actually went out for new equipment. A business can be profitable on paper while running short of cash, if capex or working capital changes eat up all the operating cash flow.
Negative FCF isn't always a bad sign — a growing company may deliberately spend more on capex than its operating cash flow, expecting a payoff later. But persistently negative FCF without growth is a sign the business is financing itself with debt or investor capital rather than its own operations.