Fair question once again, Patrick!
FCF = all the cash that enters the company within a year minus all the cash that exists a company in a given year.
Dividends and share buybacks are cash outflows which means that they deduct the company's FCF. As a result, we add them again
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Fair question once again, Patrick!
FCF = all the cash that enters the company within a year minus all the cash that exists a company in a given year.
Dividends and share buybacks are cash outflows which means that they deduct the company's FCF. As a result, we add them again