The Free Cash Flow (FCF) equation is an important element of business finance. It can be defined as the total cash generated by a business after all of its operating expenses and capital expenditures have been paid. By calculating FCF, businesses are able to assess their liquidity, investment opportunities, and the feasibility of taking on debt. Additionally, the FCF equation can provide insight into a company’s performance over time and help set financial goals for the future. To put it simply, the FCF equation helps ensure long-term success for any business.