Calculating Free Cash Flow for Forex Trading: A Guide
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Calculating free cash flow is a key part of corporate finance. Free cash flow measures the cash that a business generates from its operations after subtracting capital expenditures. This is an important number for investors to pay attention to, as it determines the money available to shareholders for paying dividends, making investments, and funding operations. To calculate free cash flow, you need to take the sum of the company’s cash flow from operating activities and subtract the cost of its capital expenditures. This gives you an understanding of how much money the company has left available to fund other activities.