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

NDR Fixed Income Allocation Strategy August 2023 Update

BY BRIAN SANBORN

The NDR Fixed Income Allocation Strategy, Positioning Update Read more →

Is The Economy Too Strong For a December Rate Cut?

BY TEMATICA

This November data will bring some answers to investors and the Fed Read more →

C8 Weekly Bulletin: Trendrating on US Bank Stocks

BY JON WEBB

C8 Technologies are delighted to announce that Trendrating will be adding 7 US and European equity indices to C8 Studio. They have been working with investors over the past 10 years to enhance equity portfolios, using a proprietary methodology which focuses on determining the ongoing trend in individual equities. Trendrating have just produced a timely report on US bank stocks which they have kindly allowed C8 to share. This illustrates that, whilst the Silicon Valley Bank failure had idiosyncratic issues, investors perceive a much wider problem with smaller US banks. Read more →

Back to all posts →