Free cash flow
Cash from operations minus what a company spends on equipment and buildings. What is left for owners.
A definition says what a thing is; it never says whether it fits you. The guides explain how it works and name the professional who confirms it for a particular person. The No Advice Disclosure.
Words beside it
- Cash flow statement
Where a company's cash actually came from and went during a period. Harder to fake than profit.
- Cash on cash return
Yearly cash a rental property leaves you divided by the cash you put in.
- Discounted cash flow (DCF)
Valuing something by its future cash, discounted to today. Two guesses do most of the work.
- Payment for order flow
Brokers being paid to send customer orders to a market maker. Why trades are free and why spreads matter.
- tax free withdrawal
Taking money out of an account without owing any taxes on it, which is one of the big rewards for following the rules of certain special accounts.
- tax-free growth
When the money inside your account earns more money over time and you do not owe any tax on those earnings. This is one of the main reasons people want a Roth IRA.
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