Free Cash Flow and Short-term Debt of Firms Listed at the Nairobi Securities Exchange Kenya
Oliver Mukweyi Pyoko,
Renson Muchiri
Abstract:The short-term debt account's value is crucial in assessing the performance of the business. Free cash flow is the amount of money a business has left over after covering its cash outflows for operating costs and capital asset maintenance. If a company takes on more debt, it will have less free cash flow available for equity in the current year. Since the debt has been paid off and does not need to be repaid, this decrease is offset in the upcoming years by a rise in free cash flow to equity. The exact opposit… Show more
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