# How To Calculate Free Cash Flow in Kantana | Arithmix

Learn how to calculate free cash flow in Kantana with our comprehensive guide. Discover the key metrics and formulas needed to accurately assess your company's financial health and make informed business decisions. Start optimizing your cash flow today.

Calculating free cash flow is an important aspect of financial analysis for any business. It helps to determine the amount of cash that a company generates after accounting for all its expenses and investments. In this article, we will discuss how to calculate free cash flow in Kantana, a fictional company that will serve as an example throughout the article.

## What Is Free Cash Flow?

Free cash flow is the amount of cash that a company generates after accounting for all its expenses and investments. It is the cash that is available to the company for distribution to its shareholders, debt repayment, or reinvestment in the business. Free cash flow is calculated by subtracting capital expenditures from operating cash flow.

Operating cash flow is the cash that a company generates from its operations, such as sales and services, minus its operating expenses. Capital expenditures are the investments that a company makes in its business, such as buying new equipment or expanding its facilities.

Free cash flow is an important metric for investors and analysts as it provides a clear picture of a company's financial health. It helps to determine whether a company is generating enough cash to sustain its operations and investments, and whether it has enough cash to pay dividends or buy back shares.

## When Is It Valuable To Calculate Free Cash Flow?

Calculating free cash flow is valuable in several situations. For example, if a company is considering investing in a new project or acquiring another company, it is important to know whether it has enough free cash flow to support these investments. Similarly, if a company is experiencing financial difficulties, calculating free cash flow can help to determine whether it has enough cash to weather the storm.

Free cash flow is also valuable for investors who are looking to invest in a company. By analyzing a company's free cash flow, investors can determine whether it is generating enough cash to sustain its operations and investments, and whether it has enough cash to pay dividends or buy back shares.

Overall, calculating free cash flow is an important aspect of financial analysis for any business. It helps to determine the amount of cash that a company generates after accounting for all its expenses and investments, and provides a clear picture of a company's financial health. By understanding how to calculate free cash flow in Kantana, you can apply this knowledge to any business and make informed financial decisions.

## How Do You Calculate Free Cash Flow in Kantana

Kantana 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 Kantana and build out dashboards.

## What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that’s powerful yet easy to use. With Arithmix you can import data from systems like Kantana, 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.