Unlocking Economic Success: Understanding Cash-Flow Impact on Investments
The Free Cash-Flow to the Firm (FCFF) and the Free Cash-Flow to Equity (FCFE) analysis is a crucial part of understanding a company's financial health. It looks at how money moves in and out of a business, which is important for investors. This analysis summarizes all economic and capital movements in terms of cash-flows, making it easier to see where the money is going.