Definition of this KPI:
Free Cash Flow represents the cash generated by a company after accounting for capital expenditures necessary to maintain or expand its asset base. It indicates the cash available for distribution to shareholders or reinvestment in the business.
This KPI can be calculated as: FCF=Operating Cash Flow − Capital ExpendituresThe KPI will be measured as: financial value (e.g. €, $)How to interpret the KPI: higher is betterThe strategic objective to measure with this KPI: Maximize free cash flow to enhance shareholder value and provide flexibility for future investments, debt reduction, or dividend payments.