The Free Cash Flow 5-Year Average indicates the average amount of cash a company generates after accounting for capital expenditures over the past five years. It shows how much money is available for reinvestment, debt repayment, or distribution to shareholders. A higher average free cash flow suggests the company has the financial flexibility to fund its growth and operations without relying heavily on external financing. Investors often use this metric to assess a company’s ability to maintain operations, pay dividends, or buy back shares.
