Free Cash Flow (FCF) is a financial metric that measures the cash a company generates after accounting for capital expenditures needed to maintain or expand its asset base. It indicates how much cash is available for distribution to investors, such as shareholders and creditors, after the company has invested in its operations. FCF is important because it provides insight into a company's financial health and its ability to generate cash. Positive free cash flow suggests that a company can fund growth, pay dividends, or reduce debt, while negative free cash flow may indicate financial challenges or the need for additional financing.