Free Cash Flow to Equity

View Financial Glossary Index

Definition

The amount of cash available to pay the equity shareholders after all expenses, reinvestments, and debts have been paid. Although the quantity tells how much a company can pay to its shareholders, it does not tell how much they actually do pay out. A portion of the company's remaining money might be kept for future growth.

Formula

There are many ways to calculate Free Cash Flow to Equity. YCharts calculates it as:

Free Cash Flow to Equity = Free Cash Flow - Debt Repayment from period

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