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25 July, 15:52

Free cash flow describes the net cash provided by operating activities after adjusting for

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  1. 25 July, 16:08
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    Free Cash Flow (FCF) describes the net cash provided by operating activities after adjusting for depreciation, amortization, capital expenditures, and working capital.

    Explanations:

    Depreciation accounts for the reduction in value of assets.

    Amortization accounts for repayment of debt obligations.

    Capital expenditures account for money spent to buy, maintain, or repair fixed assets such as buildings, equipment, vehicles, or land.

    Working capital accounts for the money required for financing day to day operations.
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