Operating cash flow minus cash outlays to replace existing operating capacity is free cash flow.

Name: Operating cash flow minus cash outlays to replace existing operating capacity is free cash flow.
Brand: Quizplus
Rating: 4.8 (45 reviews)

Question

Quizplus · Accepted Answer

Free cash flow is the cash flow available for the company to use for new investments, debt repayment, dividend payments or share buybacks after accounting for necessary expenditures to maintain a company's current operations. This is calculated as operating cash flow minus capital expenditures.

Operating Cash Flow Minus Cash Outlays to Replace Existing Operating