What is Free Cash Flow (FCF)?

Free Cash Flow (FCF) is a crucial metrics which analysts looks at to determine how efficiently a company generating cash. Simply put, it is the money or cash a company have left with after subtracting operating expenses (OpEx) and capital expenditures (CapEx). A positive cash flow indicates that company has cash to reinvest in its business for growth or reward the shareholders in form of dividends or stock buy backs.