Free Cash Flow explained

Thank you that helped a lot, especially when you showed the tables and the metaphors and examples are great! Thanks.

Thanks for the video. Actually we discussed the same topic today during a training for non finance employees. I will forward the link to them for reference.

CFOA - CAPEX is your formula... but what about interests included in Net Income when CFOA is calculate it?... I think that you should addback interest ... I think that the right formula should be write it as follows...CFOA - CAPEX + INTEREST (1-TAX) for having the real FCFF.... what do you think?...

AMAZING explanation. Thanks !

Superb video in all apsects: pleasant voice, clear explanations supported with examples from the real world.

First of all, thanks for the great video, both this one and the rest of the channel, great work, I wanted to comment a doubt if you can attend it, about the calculation of FCF of Facebook, I see that only use the investment capex, but not the maintenance capex, should not you contemplate it in the calculation of the FCF? When I say maintenance capex, I mean the necessary expense to keep the business running (maintenance of equipment and applications, guarantees, licenses, etc.) thanks in advance, regards

This is good teaching. Nice graphics. TᕼᗩᑎK YOᑌ.
Update▶A question. If CFOA = 0 and CAPEX = 1 million$. How much is FCF ?

I opt commerce with IP in my high school

Sounds like the GM of Shell!

Just started studying for My CFA and this video helped me with understanding conceptually what FCF is.
Thanks...Great Video

Excellent video, short but to the point!

Muito Obrigado. Aula bastante clara e objectiva!

Amazing videos!

Great explanation. I have got a stupid doubt though.
When a company decides to pay dividends, does the FCF decrease?

Great stuff man! Explained very clearly. Good for investing principles. May I ask what can I get from the members area?

I know the basics about cash flow definition and want to learn more. What book do you recommend me? Thanks!

I found this video very informative. I have been having problems grasping finance during my degree (remote learning) can you offer me any tutoring?

Love your videos man thanks. By the way any stock market investor should compare balance sheet and cash flow statement, in order for them to know the effectiveness of management.

I am fortunate to have discovered finance story teller videos . Thank you for explaining with clarity.

I always deduct loan repayments in the year as these have to be paid and thus cannot be classed as free cash.

Dear @The Finance Storyteller , Is Opex part of CFOA . Are they same thing pls ?

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Thank you for this!

very informative explained in the easiest of ways.....kudos, keep it up

What if a company has a net loss but still has free cash flow? What would that actually mean? I'm thinking of Roblox for instance. Their most recent financial statements show a net loss AND positive free cash flow.

If there are two companies which are spending all of their cash in the form of capex , how can I know which one of them is spending cash properly or which company is better utilizing its capex? Which ratio or financial term should I look at for this? Because investor will think In terms of free cash flow . So if most of the earnings is getting reinvested in the business by doing capex. Then there will be no free cash flow. So which financial term or metric will tell me which one is the better company in terms of proper utilization of Capex?

Hello, thank you so much for the video. Your videos are my first-choice when i dont get an accounting term. You explain it so well. Keep helping everyone! :D

Is Free Cash Flow the same as Retained Earnings?

Hi FST, thanks or the video, do you have a Video on DCF ?

Awesome

Excellent explanation. Thanks

So if a company has a cross holding. Let's say Berkshire Hathaway owns 5% of apple and 60% of another company. Does 5% of apples fcf get added to brk fcf on the income statement? Or only when you own majority of the company? 50%+

thank you

Really love your video! You explain key concept very clear with real life example! It's really great!

One of the best explanations i have heard

Thank you

easy to understand

Very helpful, thank you for this!

Yes love it

NEDERLAND

That was one good explanation!

What does "Adjusted Free Cash Flow" mean?

Great video. Very clearly explained in a reasonable amount of time. Much appreciated!!

Thank you for doing this, you're helping people more than you know. Godbless you more.

Thank you^^