Hello!
The free cashflow to the firm can be used to measure a company's profitability after all expenses and reinvestments. It can be used to compare and analyze a firm's financial health.
A positice free cash flow would indicate that the firm still has cash left after taking expenses into account. While a negative value would mean that the firm has not generated enough revenue to cover its cost and investment activities.
Hope this helps !
Hello!
The free cashflow to the firm can be used to measure a company's profitability after all expenses and reinvestments. It can be used to compare and analyze a firm's financial health.
A positice free cash flow would indicate that the firm still has cash left after taking expenses into account. While a negative value would mean that the firm has not generated enough revenue to cover its cost and investment activities.
Hope this helps !