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Free Cash Flow Metrics

Free cash flow metrics are a set of financial ratios used to evaluate a company's ability to generate and utilize its free cash flows. Free cash flow refers to the amount of cash a company has available for distribution to shareholders, debt repayment, or reinvestment in the business after accounting for capital expenditures.

What Are Free Cash Flow Metrics?​

Free cash flow metrics are designed to provide insights into a company's financial health, stability, and growth potential by analyzing its free cash flows. These metrics can be used by investors, analysts, and corporate decision-makers to assess a company's ability to:

  • Generate sufficient cash to meet its obligations
  • Invest in new projects or business initiatives
  • Return value to shareholders through dividends or share buybacks
  • Manage debt and maintain financial flexibility