Cash Flow

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- From CFO Secrets Newsletter
- Cashflow is the difference between the cash balance at two different dates. On its own, this tells you nothing. This is where the term **free cashflow** comes from.
- **Free Cashflow** looks at cashflow before accounting for amounts paid or received to and from investors. What is the generated cashflow that is ‘free’ to those investors. i.e. what is the business itself *actually *producing in terms of cashflow.
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  - **FCFE** asks what cashflow is free to shareholders in the business. 
		   **FCFE = Cashflows before any dividends, share buybacks or new equity issues. But after all debt repayments and interest get made.** 
		   **FCFF** asks what cashflow is free to all investors in the business (i.e. shareholders and lenders) |
		   **FCFF = Cashflows before any dividends, share buybacks, new equity issues, interest payments, new debt or debt repayments.**
  - ![image.png](../assets/image_1698000533975_0.png){:height 444, :width 511}
- Debt and equity funding got more expensive by 500-600 basis points a year. Which means its cool to fund your growth from your own business operations again. In short… **Free Cashflow is back** baby. #2022marketcrash
- [.. argh, I can't read more, getting accounty - [MFCF](https://www.cfosecrets.io/p/maintainable-free-cashflow?utm_source=www.cfosecrets.io&utm_medium=newsletter&utm_campaign=m-f-cashflow&jwt_token=eyJ0eXAiOiJKV1QiLCJhbGciOiJIUzI1NiJ9.eyJzdWJzY3JpYmVyX2lkIjoiZWY0MDBjYTktNTI1Ni00MmMwLWIwMDktN2I4ZTY3YTEzMGJjIiwiZXhwIjoxNjk4MDY1MTI3LCJpc3MiOiJodHRwczovL2FwcC5iZWVoaWl2LmNvbSIsImlhdCI6MTY5Nzg5MjMyN30.4sw1cI2pRjZQ1J971Vjbc_K5zY-nxl-Qw-IBWfWjCyI)]
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