Free cash flow (FCF) is the amount of cash a company has left after paying all operating expenses and capital expenditures (investments in long-term assets like equipment and buildings).
FCF is typically calculated as: FCF = Operating Cash Flow - Capital Expenditures.
Strong free cash flow indicates a healthy financial position. Companies can use FCF for debt repayment, paying dividends, share buybacks, investing in new ventures, or making acquisitions.
In Bangladesh, investors analyze listed companies' financial reports to calculate FCF, which helps inform better investment decisions.