• Free Cash Flow - A Deep Dive

  • 2024/09/18
  • 再生時間: 24 分
  • ポッドキャスト

Free Cash Flow - A Deep Dive

  • サマリー

  • Free Cash Flow is a key metric for any SaaS investor and thus for SaaS CFOs and CEOs. Moreover Free Cash Flow Margin is a key variable in the Rule of 40 - a key enterprise value creation metric. Dave "CAC" Kellogg and Ray "Growth" Rike dive deep into the value behind the FCF metric and the different ways to calculate!

    During this episode Dave and Ray discuss the following elements of Free Cash Flow:

    • Where to find Free Cash Flow on public company filings
    • The three primary Cash Flow statements
    • Different formulas to calculate Free Cash Flow
    • The impact of capitalizing sales commissions and R&D
    • The Rule of 40 calculation - Free Cash Flow as the profitability metric


    Free Cash Flow is not a metric limited to B2B SaaS companies but has become an increasingly important metric to SaaS investors as the industry matures as measured by how Enterprise Value has become more correlated to a blend of growth and profitability.

    This episode is a great listen for anyone interested in the core financial metrics that impact the value of a B2B SaaS company!

    See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

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あらすじ・解説

Free Cash Flow is a key metric for any SaaS investor and thus for SaaS CFOs and CEOs. Moreover Free Cash Flow Margin is a key variable in the Rule of 40 - a key enterprise value creation metric. Dave "CAC" Kellogg and Ray "Growth" Rike dive deep into the value behind the FCF metric and the different ways to calculate!

During this episode Dave and Ray discuss the following elements of Free Cash Flow:

  • Where to find Free Cash Flow on public company filings
  • The three primary Cash Flow statements
  • Different formulas to calculate Free Cash Flow
  • The impact of capitalizing sales commissions and R&D
  • The Rule of 40 calculation - Free Cash Flow as the profitability metric


Free Cash Flow is not a metric limited to B2B SaaS companies but has become an increasingly important metric to SaaS investors as the industry matures as measured by how Enterprise Value has become more correlated to a blend of growth and profitability.

This episode is a great listen for anyone interested in the core financial metrics that impact the value of a B2B SaaS company!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

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