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Dictionary by pitch.dog
Cash flow & liquidity · Core

Free cash flow

Also called: FCF

ELI5

Cash remaining after selected operating and capital expenditures under a stated definition.

Used in conversation

“Keep free cash flow on the dashboard, but show the definition and reporting period beside it.”

Pitch context

You will see “Free cash flow” in financial models, budgets, board packs and investor materials when the discussion reaches cash flow & liquidity.

Why it matters: In cash flow & liquidity, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

Connected terms

  • Operating cash flowOperating cash flow comes from the cash-flow statement’s operating category; free cash flow is a non-GAAP or alternative calculation whose definition must be stated.
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Sources & evidence · 4

Direct term-level sources and supporting source families.