Question

What is 'Free Cash Flow' and how do we calculate it?

I read some tutorials on this but all were confusing. Someone who can explain the concept in easy manner.

Answer 1

"A measure of financial performance calculated as operating cash flow minus capital expenditures. Free cash flow (FCF) represents the cash that a company is able to generate after laying out the money required to maintain or expand its asset base. Free cash flow is important because it allows a company to pursue opportunities that enhance shareholder value." Investopedia