Free cash flow (FCF) is an accounting figure that measures the amount of money available to a business after all expenses, investments, and obligations have been paid. It represents the actual cash flow that a company has, which can then be used for strategic growth initiatives, including acquisitions, investments, or dividend payments. FCF is often seen as the best indicator of a company’s financial health, since it reflects its ability to generate profits without additional financing. By understanding how to calculate and assess free cash flow, investors can get a more accurate picture of a company’s overall financial performance.