Free cash flow for the firm FCFF

FCFF Free cash flow for the form is a measure of financial performance that expresses the net amount of cash that is generated from the firm, consisting of expenses, taxes and changes in net working capital and investment.

To get to cash flow to the firm, you start with operating earnings, instead of net income, and subtract out taxes paid and reinvestment, defined exactly the same way it was to get free cash flow to equity

FCFF = operating cash flow - expenses - taxes - changes in networking capital - changes in investment

FCFF = 

operating income after tax -

Net Capital expenditures -

Change in non-cash working capital. 

This is a measurement of a company's profitability after all expenses and reininveaents.It is one of many benchmarks used to compare and analyse financial health.

The cash flow to the form is the cash left over after taxes and after all reinvestment needs have been met, but before interest and principal payments on debt.

A positive value would indicate that the firm has cash left after expenses. A negative value, on the other hand, would indicate that the firm has not generated enough revenue to cover its costs and investment activities.

Reinvestment rate = 

Net capital expenditure +

Change in non-cash working capital

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After-tax operating income

FCFF Free cash flow to the firm = after-tax operating income x ( 1 - reinvestment rate )

The reinvestment rate can exceed 100% of the firm is investing more than it's earning, or it can also be < 0 for firms that are diveating assets and shrinking capital

Both FCFE and FCFF are after taxes and reinvestment and both can be negative, either because a firm has negative earnings or because it has reinvestment need that exceeds income.

The key difference is that FCFE after debt cash flow and FCFF is before.