How To Calculate Free Cash Flow in HubSpot | Arithmix

Free cash flow is an important financial metric that helps businesses understand their financial health and make informed decisions. Calculating free cash flow in HubSpot is a straightforward process that involves a few key steps.

What Is Free Cash Flow?

Free cash flow is the amount of cash a business generates after accounting for all of its expenses, including capital expenditures. It is a measure of a company's ability to generate cash that can be used for investments, dividends, or other purposes.

To calculate free cash flow, you need to subtract capital expenditures from operating cash flow. Operating cash flow is the amount of cash a business generates from its operations, while capital expenditures are the funds a business spends on long-term assets like property, plant, and equipment.

When Is It Valuable To Calculate Free Cash Flow?

Calculating free cash flow is valuable for businesses in a variety of situations. For example, if a business is considering investing in new equipment or expanding its operations, it can use free cash flow to determine whether it has the funds to do so.

Free cash flow can also be used to evaluate a company's financial health. If a business consistently generates positive free cash flow, it is a sign that it is financially stable and has the ability to invest in growth opportunities.

Investors also use free cash flow to evaluate a company's performance. By comparing a company's free cash flow to its earnings, investors can determine whether a company is generating cash from its operations or relying on other sources of funding.

In conclusion, calculating free cash flow in HubSpot is an important financial analysis tool that can help businesses make informed decisions about investments, expansion, and financial health. By understanding how to calculate free cash flow and its value, businesses can position themselves for long-term success.

How Do You Calculate Free Cash Flow in HubSpot

HubSpot itself isn't naturally geared towards letting you calculate complex metrics like Free Cash Flow. As an alternative, teams typically use products like Arithmix to import data from HubSpot and build out dashboards.

What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers you'll powerful yet easy to use. With Arithmix you can import data from systems like HubSpot, combine it with data from other systems, and create calculations like Free Cash Flow.

In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.

Arithmix is fully collaborative, giving your entire team access to your numbers and the ability to work together seamlessly.

Calculating Free Cash Flow in Arithmix

Calculating metrics like Free Cash Flow is simple in Arithmix. Once you've created your free account, you'll be able to import your HubSpot data, and use it to create natural language formulas for metrics like Free Cash Flow.

Arithmix is designed to give you the power to build any calculations you want on top of your HubSpot data, while also being easy to use and collaborate on. You can share your dashboards with users inside and outside of your organisation, making it easy to empower your whole team.