Free cash flow

Cash from operations minus spending on property and equipment (capital expenditures). It's the cash a business produces that it can use for buybacks, debt repayment or acquisitions.

Simple example

A business brings in $100 of cash from its operations and spends $30 on equipment. Its free cash flow is $70: the cash left over that it could pay out, save or use to pay down debt.

$100Cash from operations−$30Equipment$70Free cash flow
Made-up numbers, for illustration only.