Post by Obafemi EMILOLA, FIMC, CMC® (@obageglobal)
A COMPANY CAN GENERATE CASH AND STILL HAVE LITTLE LEFT TO SPEND.
Operating cash flow shows the cash generated by a company's normal business activities. But the company may still need to spend money on equipment, buildings or other long-term assets.
This is where free cash flow becomes useful. It shows how much cash remains after capital expenditure.
When analysing a company, look beyond profit and operating cash flow to understand how much cash is left.
Have you ever checked a company's free cash flow before investing?
#InvestmentEducation #StockMarket #FinancialLiteracy
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Minister of Enjoyment: Free cash flow (FCF) is the cash a company has left over after paying for its operating activities and long-term investments.
Key Components
• Operating Cash Flow (OCF): Cash generated from day-to-day business operations, such as selling goods or services, paying employees, and managing inventory...
Key Components
• Operating Cash Flow (OCF): Cash generated from day-to-day business operations, such as selling goods or services, paying employees, and managing inventory...
Ukaoma Precious Eziaku: I haven't oo
The little I invested was with a stockbroker (bamboo
The little I invested was with a stockbroker (bamboo
Chidimma....: Profit is good, but the cash left after expenses tells another story.
Augustine Chiagozie: Free cash flow reveals how much financial flexibility a company truly has after funding its operations and investments.
David Onyedikachi: Yes, free cash flow is the real test of what a company can actually spend and grow with.
Paul Foxxman: Oh yeah. 😋
Free cash flow is an important factor to consider before investing because it shows how much cash a company has left after covering its operating expenses and capital expenditures. A profitable company is good, but a company that consistently generates strong free cash flow is even more...
Free cash flow is an important factor to consider before investing because it shows how much cash a company has left after covering its operating expenses and capital expenditures. A profitable company is good, but a company that consistently generates strong free cash flow is even more...