Trailing FCF

AAA

DEFINITION of 'Trailing FCF'

A company's free cash flow for the previous 12 months. Trailing FCF is used by investment analysts in calculating a company's free cash flow yield. Trailing FCF is important to investors because it shows how much money a company has brought in over the last year, after subtracting capital expenditures.

INVESTOPEDIA EXPLAINS 'Trailing FCF'

The more free cash flow a company has, the more easily it can pay its creditors and investors and reinvest in itself. A strong trailing free cash flow multiple can be a sign that a stock is a good investment when combined with other signs of financial strength, such as increasing revenues, order and sales growth, controlled SG&A costs, increasing gross profits and solid earnings per share.

RELATED TERMS
  1. Earnings Per Share - EPS

    The portion of a company's profit allocated to each outstanding ...
  2. Operating Cash Flow - OCF

    In accounting, a measure of the amount of cash generated by a ...
  3. Capital Expenditure - CAPEX

    Funds used by a company to acquire or upgrade physical assets ...
  4. Free Cash Flow - FCF

    A measure of financial performance calculated as operating cash ...
  5. Free Cash Flow For The Firm - FCFF

    A measure of financial performance that expresses the net amount ...
  6. Free Cash Flow Per Share

    A measure of a company's financial flexibility that is determined ...
Related Articles
  1. Operating Cash Flow: Better Than Net ...
    Markets

    Operating Cash Flow: Better Than Net ...

  2. Cash: Can A Company Have Too Much?
    Markets

    Cash: Can A Company Have Too Much?

  3. What Is A Cash Flow Statement?
    Markets

    What Is A Cash Flow Statement?

  4. Free Cash Flow: Free, But Not Always ...
    Markets

    Free Cash Flow: Free, But Not Always ...

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center