Free Cash Flow (FCF)

Free cash flow (FCF) = cash generated by the operations of the company (cash flow statement) - capital expenditure.

It's the amount of cash the company has available at the end of the year to meet its finance requirements (debt repayments) as well as to pay dividends.

If available trailing 12 months numbers are used, if not the numbers from the last annual report is used.

Cash generated by the operations of the company is also known as Funds from operatios - see separate definition.