Free cash flow is the amount of cash a business has remaining from operations after paying capital expenditures. Find out how investors can use free cash flow to measure the financial health of a ...

Cash generation is “king” for many investors selecting stocks. Earnings, dividends and asset values may be important factors, but it is ultimately a company’s ability to generate cash that fuels the ...

Morningstar calculates free cash flow as operating cash flow minus capital spending. It represents cash that isn’t required for operations or reinvestment. Free cash flow can be a very helpful metric ...

Free cash flow yield calculates cash efficiency vs market value, aiding in stock valuation. A high free cash flow yield indicates potential undervaluation, high investment appeal. Evaluate consistency ...

Savvy investors look at a company's financial health before buying its stock. Some investors monitor a company's free cash flow and review its cash flow statements to gauge how well it manages its ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Thomas J. Brock is a CFA and CPA with more ...

Free cash flow tells you how truly profitable a business is. Look for stocks with positive free cash flow that's growing robustly and an attractive free cash flow yield. Stocks with strong free cash ...

According to the legendary investor Warren Buffett, free cash flow—the cash remaining after a company has covered expenses, interest, taxes, and long-term investments—is the most crucial valuation ...

Cash generation is “king” for many investors selecting stocks. Earnings, dividends and asset values may be important factors, but it is ultimately a company’s ability to generate cash that fuels the ...