FCF

Free Cash Flow (FCF) is a key financial metric that shows how much cash a company has available after paying for operating expenses and capital investments such as property, equipment, and infrastructure. It reflects the actual liquidity available to invest in growth, pay dividends, reduce debt, or return value to shareholders.

The formula typically used is:
 FCF = Operating Cash Flow – Capital Expenditures

In the context of Amazon and its sellers/vendors, FCF is important for:

• Evaluating the sustainability of business operations
• Planning for expansion or product launches
• Understanding investment capacity without relying on external funding
• Attracting investors by showing financial efficiency

💡 Example: An Amazon private-label brand calculates its FCF to decide whether it can afford to invest in new machinery or launch a new product line without taking out a loan.

In short:
FCF (Free Cash Flow) measures how much cash remains after necessary business investments — a vital indicator of financial strength and flexibility.