The final step in calculating free cash flow is to deduct capex from operating cash flow. Example of a Free Cash Flow Calculation The terms from an equation can look confusing if you haven't tried ...

But left unchecked, negative cash flow can tear apart the very fabric of a business. For example, when negative cash flow results in a company’s failure to make payments on a loan, that makes ...

Free cash flow is an indicator of a company’s financial strength, showing its ability to make payments as well as preserve cash to cover future expenses such as acquisitions. Free cash flow is ...