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Investments glossary

Free Cash Flow to the Firm – FCFF Definition


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Quotes of the day:

Doctors pour drugs of which they know little, to cure diseases of which they know less, into patients of whom they know nothing.

— Moliere

Free cash flow to the firm (FCFF) represents the amount of cash flow from operations available for distribution after depreciation expenses, taxes, working capital, and investments are accounted for and paid. FCFF is essentially a measurement of a company’s profitability after all expenses and reinvestments. It is one of the many benchmarks used to compare and analyze a firm’s financial health.


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