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Definition

Free cash flow

Free cash flow means cash provided by operating activities adjusted for capital expenditures and dividends paid.

The measurement of free cash flow provides additional insight regarding a company’s cash-generating ability.

 Free cash flow describes the cash remaining from operations after adjustment for capital expenditures and dividends.

Free Cash Flow =   Cash provided by – Capital Expenditures – Cash Dividends

                                 Operating Activities

 

 

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