Free Cash Flow
The actual cash available to the business after paying for operating expenses AND capital investments (equipment, property, etc.). This is the cash truly available for growth, debt repayment, or distributions.
- How it's worked out
- Operating Cash Flow − Capital Expenditures (CapEx)
- Which way is better
- Higher is betterHigher is better for cash.
Written by Mandy Walker, founder of Focus on Cash. Updated October 2026. This explanation comes from the glossary inside Focus on Cash, so it matches the words you see in the app.
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