Benefits of Free Cash Flow

Free cash flow (FCF) is crucial for a company’s financial health, as it indicates the cash available for growth opportunities, debt repayment, and shareholder returns. By maintaining a robust FCF, businesses can invest in new projects, improve operational efficiencies, and provide dividends or stock buybacks, enhancing shareholder value. Additionally, strong free cash flow acts as a buffer during economic downturns, allowing companies to weather challenges without sacrificing growth.