Free Cash Flow
- Social Sciences -
Economics & Business Dictionary
Definition
A finance concept defining methods and measures used to price assets, evaluate investments, and manage risk. It specifies cash-flow timing, discounting, risk premia, and exposure metrics used in decision-making and reporting. It does not ensure profitability and depends on input quality, model assumptions, and market conditions for reliable use.
Free Cash Flow
- Social Sciences -
Finance & Accounting Dictionary
Definition
A corporate finance concept defining how investment decisions and funding choices are evaluated using cash flows and required returns. It governs capital allocation, financing structure, and evaluation of projects or transactions under explicit assumptions about risk and timing.
Free Cash Flow
Social Sciences Dictionary
Definition
Operating cash flow for a period reduced by the capital expenditures required to maintain or replace productive assets (maintenance capex); it represents the residual cash that, after necessary reinvestment in fixed assets, is available to creditors and owners for debt service, distributions or discretionary investment.