The cash left over that the company can choose how to use
Free cash flow is the cash generated by operations minus the capital spending needed to keep the business running. What remains is what can fund dividends, buybacks, debt repayment, or new investment. A run of positive free cash flow means the company can grow and return money without borrowing.
Operating cash flow of $120 million less $70 million of capital spending leaves $50 million free.
For learning, not investment advice. Decisions are your own.
StockFit · TrueNorthLabs Inc.