Cash Flow Analysis
Free cash flow, capital allocation, and FCF quality — the most honest view of a business's health
Cash flow statement (₹ Crore, last 5 years)
Capital allocation — how was cash deployed?
Capital allocation quality distinguishes good companies from great ones. The best businesses generate excess FCF and either reinvest it at high returns or return it to shareholders.
Free cash flow = Operating cash flow minus Capex. It represents cash the business actually generated that owners can use. A company with positive FCF every year is healthier than one whose profits are not converting to cash.