Earnings/FCF = Earnings/Free Cash Flow
Earnings/FCF shows the proportion of the profit that corresponds to the company's free cash flow.
Shows whether the company's earnings is close to the company's free cash flow.
Things to keep in mind
- A value less than 100% shows that the earnings is lower than the free cash flow.
- A value greater than 100% indicates that the earnings is greater than the free cash flow.