## Free Cash Flow Formula: An Academic Guide to Forex Trading

Forex traders use the free cash flow formula to measure the total amount of cash a company is generating in a given period of time without deducting capital expenditures. This formula helps traders evaluate the financial health of companies and decide whether to buy or sell their stock. By adding up the cash a company is making from operations and subtracting out capital expenditures, investors can determine a company’s free cash flow. This figure is an important metric to monitor in order to make informed investment decisions.