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quipment. Free cash flow is the cash that remains after the company pays for operating expenses and investments. It is essential for investors to understand free cash flow as it indicates how much cash a company has available to distribute to investors or reinvest in the business. In order to calculate free cash flow, you need to subtract capital expenditures and working capital investments from operating cash flow. Understanding free cash flow can help investors evaluate a company's financial health and potential for growth, making it a valuable tool for investment analysis.