Rubric grading
Graded like a finance lead would
AI answers to finance and accounting questions, scored 1–5 on each criterion. A factually wrong core claim caps the overall score at 2, however well it is written. Every grade explains itself.
- 8 graded answers
- 4 with a wrong core claim
- 3 criteria + overall
- US GAAP / ASC 606
Free cash flow
grade-03
Prompt
How do you calculate free cash flow, and why do investors care about it?
Response to grade
Free cash flow = cash flow from operations − capital expenditures. It shows how much cash the business generates after maintaining and growing its asset base.
Expert grade
- Accuracy
- 5/5
- Completeness
- 3/5
- Clarity
- 5/5
- Overall
- 4/5
The formula and meaning are right. It only half-answers the second part: it should say investors use FCF for dividends, buybacks, debt paydown and valuation (DCF).
- Accuracy — Facts, numbers and accounting treatment are correct.
- Completeness — Answers every part of the question.
- Clarity — Easy to follow, no filler.