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Investments glossary

Free Cash Flow to the Firm – FCFF Definition

Free cash flow to the firm (FCFF) represents the amount of cash flow from operations available for distribution after depreciation expenses, taxes, working capital, and investments are accounted for and paid. FCFF is essentially a measurement of a company’s profitability after all expenses and reinvestments. It is one of the many benchmarks used to compare and analyze a firm’s financial health.

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