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  • Casual Articles - Free Cash Flow: A Simple Indicator of a Company's Health

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    your deposit starts shrinking or if you need to dip into your savings account just to tread wat
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    One of the best indicators of corporate health is the Free Cash Flow (FCF) of a company and, unlike some other indicators, it is relatively easy to understand.

    Think of FCF as the deposit you put in a savings account after paying your regular monthly bills. If this deposit keeps increasing, you should feel pretty good about the state of your finances. On the other hand, if your deposit starts shrinking or if you need to dip into your savings account just to tread wate

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    like some other indicators, it is relatively easy to understand.

    Think of FCF as the deposit you put in a savings account after paying your regular monthly bills. If this deposit keeps increasing, you should feel pretty good about the state of your finances. On the other hand, if your deposit starts shrinking or if you need to dip into your savings account just to tread wat

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    it you put in a savings account after paying your regular monthly bills. If this deposit keeps increasing, you should feel pretty good about the state of your finances. On the other hand, if your deposit starts shrinking or if you need to dip into your savings account just to tread wat
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    increasing, you should feel pretty good about the state of your finances. On the other hand, if your deposit starts shrinking or if you need to dip into your savings account just to tread wat
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    your deposit starts shrinking or if you need to dip into your savings account just to tread water, you know some serious financial problems may be lurking just around the corner.

    Corporations operate in much the same manner. First, like a paycheck, they generate cash from operating the business. This is called Operating Cash Flow (OCF). From this, they subtract their Capital Expenditures. Capital expenditures are expenses for capital equipment and other physical prope

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