Friday, January 20, 2006

Foolish Fundamentals: Free Cash Flow

By Motley Fool Staff December 29, 2005

We talk about free cash flow a great deal around here, and with good reason. It is the gold standard by which to measure the profitability of a company's operations. Free cash flow is not perfect, but it is more difficult to manipulate than net income or earnings per share (more on this later). For this reason, it is also likely to be lumpier than net income.

All the best,

Dah Hui Lau (David)

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