What is Free Cash Flow (describe it in the financial literacy and accounting literacy)

Title : The most value relevant definition of free cash flow

Introduction

• What is Free Cash Flow (describe it in the financial literacy and accounting literacy)

• Importance of Free Cash Flow

• Misuse of Free Cash Flow

Body

• What causes different calculations of Free Cash Flow definitions

• Which FCF calculations(definition) is most associated with stock price changes

  • What this means for investors?

  • What it means for companies paying dividends.

• How can this definition of Free cash flow help to measure the performance(stock price) of the company

• Which method is best in predicting a firm’s performance (Free cash flow, earnings or Operating cash flow) (explain why?)

Conclusion

• Our view on the definition of Free cash flow and its different uses

• Recommendation for standardization of free cash flow