What is the difference between free cash flow and operating cash flow?

Importantly, free cashflow to the firm also nets the effects of capital expenditures, which operating cashflows don't take into account. Free cashflow is usually used for valuation, while operating cashflows are not.

Free cashflow to the firm can takes into account broader business cycles and development of the company, since capital expenditures are usually a big part of the business. Operating cashflow takes into account what happens to the company on a regular operating basis.

Hello!

Free cash flow is usually used as a measure of financial performance. It is used to measure the available cash flow that is van be used for distribution to all securities holders. Usually, the higher the company's free cash flow, the better the company is performing.

While operating cash flow measures the amount of cash that is earned during a company's normal course of business.

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