Savvy investors look at a company’s financial health before buying its stock. Some investors monitor a company’s free cash flow and review its cash flow statements to gauge how well it manages its ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Thomas J. Brock is a CFA and CPA with more ...

Learn how to calculate operating cash flow margin, a vital indicator of earnings quality and efficiency, with a detailed formula and practical example.

Free cash flow is the amount of cash a business has remaining from operations after paying capital expenditures. Find out how investors can use free cash flow to measure the financial health of a ...

Cash generation is “king” for many investors selecting stocks. Earnings, dividends and asset values may be important factors, but it is ultimately a company’s ability to generate cash that fuels the ...

Unlevered free cash flow (UFCF) shows the true cash flow of firms by excluding debt impacts, aiding clear operational assessment. It allows comparisons across companies regardless of their debt levels ...

Many software CEOs highlight their large "free cash flow" generation in company presentations. However, in software, this free cash flow metric is heavily distorted in two ways, when compared with ...