Unlocking Company Financial Health: Free Cash Flow Indicator for Investors
Free Cash Flow (FCF) is a key indicator for investors to measure a company's financial growth. It shows how much extra cash a company generates after covering expenses and investments. FCF helps investors see if a company can pay them back after funding its operations. By looking at FCF, investors can assess if a company has enough cash to pay dividends and buy back shares. It reveals potential issues in a company's financial health before they show up in the income statement.