Free Cash Flow Calculator
Calculate free cash flow and analyze financial performance with comprehensive FCF metrics
Calculate Free Cash Flow
Net cash generated from business operations
Cash spent on property, plant, and equipment
Total number of shares issued by the company
Current stock price per share
Total revenue for FCF margin calculation
Cash Flow Analysis
Performance Assessment
Negative or zero free cash flow indicates cash consumption
Example: Synnex Corporation (2019)
Financial Data
Operating Cash Flow: $549,919,000
Capital Expenditures: $137,423,000
Shares Outstanding: 50,936,000
Stock Price: $145.00
Calculation Results
Free Cash Flow: $549,919,000 - $137,423,000 = $412,496,000
FCF per Share: $412,496,000 ÷ 50,936,000 = $8.10
Market Cap: 50,936,000 × $145 = $7,385,720,000
FCF Yield: ($412,496,000 ÷ $7,385,720,000) × 100 = 5.59%
Free Cash Flow Uses
Dividend Payments
Return cash to shareholders
Share Buybacks
Reduce share count, increase EPS
Debt Reduction
Pay down principal, reduce interest
Acquisitions
Strategic growth investments
FCF Yield Benchmarks
Note: Benchmarks vary by industry. Capital-intensive industries typically have lower FCF yields.
Understanding Free Cash Flow
What is Free Cash Flow?
Free Cash Flow (FCF) is the cash a company generates after accounting for capital expenditures needed to maintain or expand its asset base. It represents the cash available to pay dividends, buy back shares, pay down debt, or make acquisitions.
Why is FCF Important?
- •Shows actual cash generation capability
- •Better than net income for valuation
- •Indicates dividend sustainability
- •Reveals financial flexibility
FCF Formula
FCF = Operating Cash Flow - Capital Expenditures
Key Metrics
- FCF per Share: FCF ÷ Shares Outstanding
- FCF Yield: FCF ÷ Market Capitalization
- FCF Margin: FCF ÷ Revenue
- Payback Period: Market Cap ÷ FCF
Tip: Look for companies with consistently growing FCF and stable FCF margins.