Why might an analyst not put much weight on a firm’s current free cash flow

For what purposes might forecasting cash flows be an analysis tool?
2. For a pure equity firm (with no net debt), how is free cash flow disposed of?
3. Why might an analyst not put much weight on a firm’s current free cash flow as an indication of future free cash flow?
4. Explain why very profitable firms sometimes have negative free cash flows.

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For what purposes might forecasting cash flows be an analysis tool?

 For the purpose of predicting future financial liquidity of the business. Present data and previous data are compared and future financial figures for a given period of time are predicted………………..

APA

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