Ten Stock Analysis Ratios Used By The Pros: Free Cash Flow

Seventh Key Ratio :

Free Cash Flow

A barometer of a firm’s solvency, Free Cash Flow highlights a business’ ability to deal with sudden shocks and whether it is able to finance expansion from its current operations.

Formula:

Cash Flow From Operations


Capital Expenditure

Free Cash Flow = Cash Flow from Operations – Capital Expenditure

EPS = Net Income/Number of Share Outstanding

To download a complete PDF of all the ratios we will be talking about in this article, please complete the form below.

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