Asked by
Connor Tinkle
on Nov 19, 2024Verified
Negative free cash flow does not automatically signal poor performance.
Negative Free Cash Flow
A situation where a company's cash outflows exceed its cash inflows during a specific period, indicating potential financial difficulties.
Free Cash Flow
The amount of cash generated by a company after accounting for operational expenses and capital expenditures.
Poor Performance
A situation where an individual or entity fails to meet established standards or expectations in terms of output, efficiency, or effectiveness.
- Understand the concept and calculation of free cash flow.
Verified Answer
JR
Learning Objectives
- Understand the concept and calculation of free cash flow.