The 5-Year Free Cash Flow CAGR (Compound Annual Growth Rate) measures the average annual growth rate of a company's free cash flow over five years. It reflects the company's ability to generate cash after accounting for capital expenditures, which is crucial for funding operations, paying debts, or reinvesting in the business. A positive Free Cash Flow CAGR suggests strong financial health and liquidity, while a declining rate may indicate cash flow challenges. This metric is vital for assessing a company's long-term sustainability and financial flexibility.
