Free Cash Flow (FCF)

Free Cash Flow is the actual cash a company generates after paying for the stuff it needs to run and grow—like equipment, salaries, and inventory. It's the money left over that the company can use to pay dividends, buy back stock, or reinvest in the business. You'll see FCF mentioned constantly in stock analysis because it's harder to fake than reported earnings; you can't argue with actual cash in the bank. A company might look profitable on paper but have negative FCF if it's burning through cash faster than it's earning it. For example, TechCorp might report $100 million in profit but only have $20 million in free cash flow after capital expenses, which tells you the real financial picture.