Understanding Free Cash Flow Per Share

Free cash flow per share (FCF per share) is a measure of a company’s financial flexibility. It is calculated by dividing the free cash flow by the total number of shares outstanding. Free cash flow represents the cash that a company generates after accounting for cash outflows to support its operations and maintain its capital assets2.

When you see a negative value like -3.41 for free cash flow per share, it means that the company is spending more cash than it is generating. This could be due to high operational expenses, significant capital expenditures, or other financial challenges. Essentially, the company is not generating enough cash to cover its costs, which can be a red flag for investors.