Your question is Defining Free Cash Flow. Take a moment with it on the right.
Talk me through your thinking if you like. When you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes).
How do you define Free Cash Flow (FCF)?
Asked in the Superday stage. Asked during the three back-to-back Superday interviews.
No company-specific financial figures were provided. The numerical fields below are zero placeholders solely to demonstrate the formulas without inventing a business scenario.
| Item | Amount |
|---|---|
| Cash flow from operations | $0 |
| Capital expenditures | $0 |
| EBIT | $0 |
| Cash taxes on EBIT | $0 |
| Change in net working capital | $0 |
Use standard corporate finance terminology. FCF is not a separately defined GAAP income-statement line item.