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Often we fill in details when recalling natural events. We seem to add material to what we actually experienced. This phenomenon is referred to as
Free Cash Flow
The cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.
Capital Expenditures
Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment to boost its long-term revenue.
Depreciation
The accounting method of allocating the cost of a physical or tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.
EBIT
A financial metric that calculates a company's profit by including all costs except for interest and income tax expenses, known as Earnings Before Interest and Taxes.
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