MARKETS / GLOSSARY / FREE CASH FLOW

Free cash flow

The cash actually left over after running the business and keeping its assets in shape. It is what can pay a dividend, repay debt or buy back shares without borrowing.

Definition

How it is computed here

Formulacash from operations − capital expenditure
UnitCurrency amount
PeriodOne fiscal year, as reported
SourceExtracted from SEC filings; every value on an asset page carries the accounting tag and the filing it came from
Identifierfluxo_caixa_livre
The limit

What this number does not tell you

Free cash flow can be flattered for a year or two by simply not investing — cutting capital expenditure raises it immediately and costs the business later. It also swings with working capital in ways that say more about timing than about performance.

Every metric on this site is published with its blind spot stated. A figure without its limit is half a fact.

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In the data

Highest reported free cash flow

From the most recent fiscal year of each company. Only companies reporting in US dollars are ranked here — a figure in yen or won is not larger, it is in another currency.

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