The Importance of Free Cash Flow

Free Cash Flow is arguably the most important financial metric for a company -- not only because "cash is king" from a shareholder's perspective, but also because this metric avoids distortions that are inherent with other commonly-used measures of a company's financial performance.
BY DOUG SCHERRER

The Efficient Alpha Capital Free Cash Flow Index uses various measures of Free Cash Flow generation to identify company’s with superior return potential.  This Whitepaper demonstrates how to calculate Free Cash Flow, reveals why this metric is so important, and compares Free Cash Flow to other measures of a company’s financial performance, such as EBITDA and Net Income.

Free Cash Flow Whitepaper – Efficient Alpha Capital – June 2020

Other posts

More Big Bank Earnings, TSM Reports, December Retail Sales Ahead

BY TEMATICA
Plus our market recap from yesterday and a fresh pile of model signals Read more →

April Inflation & Retail Sales Data Ahead, But Why Earnings Will Matter More

BY TEMATICA
Plus some fresh words from Fed Chair Powell on Wednesday Read more →

Day Hagan/NDR Smart Sector® with Catastrophic Stop Strategy November 2023 Update

BY BRIAN SANBORN
Day Hagan/Ned Davis Research Smart Sector® with Catastrophic Stop strategy, model and allocations update. Read more →
Back to all posts →