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What is Free cash flow?

Cash a business generates after operating costs and reinvestment: net operating profit after tax plus depreciation, less capital expenditure and the change in working capital.

Where you will use it: this term comes up in the Applied AI for Finance and Accounting course, and the full course glossary collects every term in one place.

Related terms

From the free Applied AI for Finance and Accounting course by Devon Coombs, CPA, MBA.