Free cash flow is the cash left over after a company pays for its operating expenses and CapEx. It is the money that remains after paying for items like payroll, rent, and taxes. Companies are free to use FCF as they please. Knowing how to calculate FCF and analyze it helps a company with its cash management and will provide investors with insight into a company's financials, helping them make better investment decisions. FCF is an important measurement since it shows how efficient a company is at generating cash.