The cash generated by a company's operations after accounting for capital expenditures needed to maintain or expand its asset base. It represents the actual cash available to shareholders, creditors, and for reinvestment.
From Old English 'freo' (not in bondage) and Old French 'cache' (to hide). The modern financial concept developed in the 1980s as investors sought better measures of a company's true cash-generating ability beyond accounting profits.
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