How can FCF improve for a company?

What things need to happen for a company to improve it’s fcf?

Improved earnings? Improved revenues? Improved margins?


free cash flow (fcf)

More specifically, how can a fcf negative company become fcf positive?

The problem is that there are various definitions of free cash flow, and various types of free cash flow.

The CFA curriculum focuses on free cash flow to the firm (FCFF) and free cash flow to equity (FCFE).

Of course, there are commonalities to all definitions. Which definition of FCF are you using?

Revenue and margin expansion!