How To Calculate Levered Cash Flow in BQE CORE | Arithmix

Calculating levered 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 its debt obligations. This can be useful in evaluating the financial health of a business and making investment decisions. In this article, we will discuss how to calculate levered cash flow in BQE CORE.

What Is Levered Cash Flow?

Levered cash flow is the amount of cash that a company generates after accounting for its debt obligations. It takes into account the interest payments and principal repayments that a company makes on its debt. This is important because it gives a more accurate picture of a company's financial health than just looking at its net income. A company may have a high net income, but if it has a lot of debt, it may not be generating enough cash to cover its debt payments.

Calculating levered cash flow involves subtracting a company's debt payments from its operating cash flow. This gives an indication of how much cash a company has available to pay its debt obligations and invest in growth opportunities.

When Is It Valuable To Calculate Levered Cash Flow?

Calculating levered cash flow is valuable in a variety of situations. For example, if you are considering investing in a company, you may want to calculate its levered cash flow to get a better understanding of its financial health. If a company has a high levered cash flow, it may be in a better position to pay off its debt and invest in growth opportunities.

Levered cash flow can also be useful in evaluating the financial health of a company over time. By tracking changes in levered cash flow over several periods, you can get a sense of whether a company is improving its financial position or not.

Overall, calculating levered cash flow is an important aspect of financial analysis that can provide valuable insights into a company's financial health. By using BQE CORE, you can easily calculate levered cash flow and make more informed investment decisions.

How Do You Calculate Levered Cash Flow in BQE CORE

BQE CORE itself isn’t naturally geared towards letting you calculate complex metrics like Levered Cash Flow. As an alternative, teams typically use products like Arithmix to import data from BQE CORE 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 BQE CORE, combine it with data from other systems, and create calculations like Levered 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 Levered Cash Flow in Arithmix

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

Arithmix is designed to give you the power to build any calculations you want on top of your BQE CORE 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.