Free Cash Flow To Sales

Posted in Finance, Accounting and Economics Terms, Total Reads: 373
Advertisements

Definition: Free Cash Flow To Sales

Free cash flow (FCF) of a company is that amount which is available to equity and debt holders. This ratio specifies the FCF as a percentage of the total sales of the company.


Free cash flow to sales is calculated as follows

Free Cash Flow to Sales = Free cash flow/Sales


The total sales of a company in the given period are used here to calculate the ratio. 

It is difficult to manipulate the FCF of a company. This is usually used to understand how much of the total revenue of the company is effectively being converted into cash.

 

Search & Explore : Management Dictionary

Browse definitions and meaning of more concepts and terms similar to Free Cash Flow To Sales. The Management Dictionary covers definitions and overview of over 7000 business concepts from 6 categories.

Advertisements



Share this Page on:

Similar Definitions from same Category: