Smart Finance

Term

Free cash flow

The cash a company's operations bring in, minus what it spends on fixed assets (capex). It is the money left to pay debt, pay dividends, buy back shares or keep.

In pesos: If your stand's operations bring in $30,000 MXN in cash this year and you spend $12,000 on a new grill, your free cash flow is $18,000: that is what the business could actually hand you.

Where to go deeper

2/4 6 min Read What you actually buy when you buy a share A share is a piece of a company, not a number on a screen. Where its value comes from, why the price moves, what a dividend is, and why it is not a lottery ticket.

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Educational content only: not financial, investment or tax advice. The numbers are examples to understand the idea, not a forecast or a recommendation.