According to @QCompounding, Free Cash Flow (FCF) is cash coming in minus cash going out and shows how much cash remains after expenses, source: @QCompounding. Traders use FCF and FCF yield to value equities and to gauge capacity for buybacks, dividends, and debt reduction, source: CFA Institute. FCF is a non-GAAP metric and definitions vary by company, so traders should verify each issuer’s calculation in filings, source: U.S. SEC.