• A higher free cash flow yield is ideal because it means the company has enough cash to meet all of its obligations.

  • If the free cash flow yield is low, it means that investors are not making very good returns on the money they put into the company.
  • Free cash flow income gives investors an idea of how financially a company is able to have quick access to cash in the event of unforeseen debts or other obligations, or how much cash will be available if the company has to go into liquidation.