Plain-language questions
Ask for free cash flow (FCF) per month, customer or product in the SQL Explorer with AI. The AI writes the SQL, you see the query and run it yourself; the AI only receives metadata.
KPI · Finance
Free cash flow (FCF): formula and example.
Free cash flow (FCF) is operating cash flow minus capital expenditure (capex) on fixed assets. It is the cash that operations generate after paying for the investments needed to keep the business running and growing. Free cash flow is what you use to repay debt, pay dividends or build a cash buffer.
Free cash flow (FCF) formula
Operating cash flow − capital expenditure (capex)
Worked example
In 2025 Acme Groothandel had operating cash flow of €1,050,000 and invested €380,000 in a new forklift, racking and software. Free cash flow is €1,050,000 − €380,000 = €670,000.
Fictitious figures for Acme Groothandel, a sample wholesaler.
How to read this KPI
Positive free cash flow means the business can fund its investments from its own resources. Negative free cash flow is not necessarily bad if the business is investing deliberately in growth, but it then needs to be financed. Compare free cash flow with net profit: if it stays consistently below profit, cash is being tied up in working capital or investment needs are high.
Pitfalls with free cash flow (FCF)
- Confusing profit with cash: a profitable business can have negative cash flow because of growing stock and receivables.
- Judging a single month or quarter when large investments and tax payments fall irregularly; use a rolling twelve-month total.
- Treating lease payments or loan repayments inconsistently, so free cash flow is not comparable between periods.
SQL & DAX
Calculating free cash flow (FCF) in SQL and DAX
Two examples on a fictitious data warehouse for Acme Groothandel: a PostgreSQL query and a measure for a Power BI model. Adjust table and column names to your own model.
SELECT month,
operating_cash_flow,
capex,
operating_cash_flow - capex AS free_cash_flow,
SUM(operating_cash_flow - capex)
OVER (ORDER BY month ROWS BETWEEN 11 PRECEDING AND CURRENT ROW) AS fcf_rolling_12m
FROM cash_flows
WHERE month >= date_trunc('month', current_date) - interval '24 months'
ORDER BY month;Free Cash Flow = SUM(CashFlows[OperatingCashFlow]) - SUM(CashFlows[Capex])
FCF Margin % = DIVIDE([Free Cash Flow], CALCULATE(SUM(GL[Amount]), GL[AccountGroup] = "revenue"))In ENABLE
Tracking this KPI in ENABLE
In your Power BI dashboard
Define the KPI as a measure in your Power BI model and show it in the portal, with "Last refreshed" next to it. Access profiles and optional row-level security decide who sees which figures.
Custom dashboards (pilot)
Add the KPI as a tile to a custom dashboard, compared with last year. The Dashboard Builder is a pilot and can be switched on per client.
Monthly targets
With the built-in Targets app you set a target for the KPI per month, so you see actuals and target side by side.
FAQ
Frequently asked questions
How do you calculate free cash flow?
Subtract capital expenditure on fixed assets from operating cash flow. With €1,050,000 of operating cash flow and €380,000 of capex, free cash flow is €670,000. Both figures appear in the cash flow statement.
What is the difference between free cash flow and profit?
Profit is an accounting result, free cash flow is the cash that is actually left after investment. Depreciation reduces profit but not cash flow, while investment and growing stock reduce cash flow but not profit.
What is the difference between free cash flow and EBITDA?
EBITDA is profit before depreciation, interest and tax, but ignores investment and changes in working capital. Free cash flow takes both into account and so shows how much cash is really left over.
Further reading
- KPI libraryFinancial KPIs: formulas and examplesFinancial KPIs show how profitable, liquid and solvent an organisation is. The data usually comes from your accounting package or ERP: general ledger entries, invoices and open items.Read more
- ResourcesHow to build a KPI dashboard: steps and examplesA KPI dashboard is an overview of the key figures you use to steer towards your goals, such as revenue, margin, on-time delivery or absenteeism. A good KPI dashboard does not start with the software, but with the decisions it needs to support. You then choose a limited number of KPIs, define them, sketch the dashboard and only then build it.Read more
- SolutionPower BI dashboard portal: share dashboards securelyShare your Power BI dashboards securely in your own portal, with role-based access.Read more
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