Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Free cash flow is a measure that helps business owners, investors and others assess a business’s financial performance and outlook. Free cash flow is defined as operating cash flow minus capital ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Andy Smith is a Certified Financial Planner ...

A company's cash flow, both inflow and outflow, is the result of operating, investing and financing activities. Revenues and expenses from operations are only part of the cash flow calculation, which ...

Free Cash Flow (FCF) Margin is a financial metric that measures a company’s ability to generate cash from its operations relative to its revenue. Represented as a percentage, it shows how much free ...

Discounting a future cash flow expresses future returns in today's dollars. This allows a fair comparison between initial business expenses and your expected or realized returns. As an example, you ...

IRR measures the rate needed to break even on an investment. Calculate IRR by setting NPV to zero and solving for the discount rate. Use Excel's IRR function by inputting initial cost and cash inflow.

If you are curious about what is free cash flow, you must know its types. There are two main types: free cash flow to the Firm and Free Cash Flow to Equity. FCFF or Free Cash Flow to the Firm FCFF, or ...