When investors evaluate a company’s financial health, most tend to look at net profit first. It is a headline number, prominently displayed in quarterly results and reports. However, while profit is ...

Free cash flow (FCF) shows how much cash a company has after expenses. Positive FCF means a company can invest, pay dividends, or reduce debt. Negative FCF isn't always bad; startups may spend more ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Michael Boyle is an experienced financial ...

FCFE shows a company's money left after paying bills, essential for assessing financial health. To calculate FCFE: net income + depreciation - capex - working capital + net debt. Positive FCFE ...