Trailing FCF


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.


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.

  1. Capital Expenditure (CAPEX)

    Capital expenditure, or CapEx, are funds used by a company to ...
  2. Earnings Per Share - EPS

    The portion of a company's profit allocated to each outstanding ...
  3. Free Cash Flow - FCF

    A measure of financial performance calculated as operating cash ...
  4. Free Cash Flow Per Share

    A measure of a company's financial flexibility that is determined ...
  5. Free Cash Flow For The Firm - FCFF

    A measure of financial performance that expresses the net amount ...
  6. Operating Cash Flow - OCF

    Operating Cash Flow (or OCF) is a measure of the amount of cash ...
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