Free cash flow (FCF) equals the Cash generated by the operations of the company (cash flow statement) - Capital Expenditure (Capex).
It is thus Funds From Operations (FFO) - Capital Expenditure.
It is the cash the company has available
It's the amount of cash the company has available at the end of the year to meet its finance requirements (debt repayments) as well as to pay dividends.
How you can use the ratio
It is only used for calculation purposes and is not available as a screening value.
Remember
All ratios are calculated on a trailing 12 months (TTM) basis.
This means the last twelve months (not the company’s financial year) is compared to the same period in the past.
We do this to make sure that the screener data includes the latest, most up to date, financial results of the company.
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