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Free cash flow is an important aspect for young growing companies. It gives a good measure if a company is financially stable and allows room for agility.

That is to be able to make acquisitions of quality investments and to further accelerate growth or reduce debt quicker depending on market conditions, and ultimately to provide dividends.


If the company has a negative free cash flow then things obviously won't go well, it will have to slow down growth and/or find ways to cut cost whilst not being able to take opportunities that present themselves.

The higher the free cash flow the better to an extent.