easy · Debt Capital Markets
Free Cash Flow (FCF) is considered more critical for credit analysis than accounting earnings because FCF represents:
- The cash flow received from selling new equity to the public.
- The earnings before interest, taxes, and depreciation.
- The actual cash available to service and repay debt after necessary capital expenditures.
- The total amount of cash the company has sitting in its bank accounts.
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More Debt Capital Markets practice
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