I got following definition of FCF,
Why is this stock plungging if FCF is 20m just from one mine. Thatis almost 50% of MC.
Does anyone know something??????
Definition of 'Free Cash Flow - FCF'
A measure of financial performance calculated as operating cash flow minus capital expenditures. Free cash flow (FCF) represents the cash that a company is able to generate after laying out the money required to maintain or expand its asset base. Free cash flow is important because it allows a company to pursue opportunities that enhance shareholder value. Without cash, it's tough to develop new products, make acquisitions, pay dividends and reduce debt. FCF is calculated as:
EBIT(1-Tax Rate) + Depreciation & Amortization - Change in Net Working Capital - Capital Expenditure
It can also be calculated by taking operating cash flow and subtracting capital expenditures.
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