How To Calculate Levered Cash Flow in Odoo | Arithmix

Levered cash flow is an important financial metric that helps businesses understand their financial health and make informed decisions about investments and financing. In simple terms, it is the amount of cash flow that is available to investors and lenders after all the expenses and debts have been paid off. Calculating levered cash flow can be a bit tricky, but with the right tools and techniques, it can be done easily and accurately.

What Is Levered Cash Flow?

Levered cash flow is a measure of a company's financial performance that takes into account the impact of debt and other financial obligations. It is calculated by subtracting the company's interest expenses and other debt payments from its operating cash flow. The resulting figure represents the amount of cash flow that is available to investors and lenders after all the expenses and debts have been paid off.

Levered cash flow is an important metric for investors and lenders because it provides a more accurate picture of a company's financial health than other measures such as net income or earnings per share. By taking into account the impact of debt and other financial obligations, levered cash flow provides a more realistic view of a company's ability to generate cash and pay off its debts.

When Is It Valuable To Calculate Levered Cash Flow?

Calculating levered cash flow is valuable in a variety of situations. For example, it can be useful when evaluating the financial health of a company that is considering taking on additional debt or issuing new shares of stock. By calculating levered cash flow, investors and lenders can get a better sense of the company's ability to generate cash and pay off its debts.

Levered cash flow can also be useful when evaluating the financial health of a company that is considering making a major investment or acquisition. By calculating levered cash flow, investors and lenders can get a better sense of the potential return on investment and the risks associated with the investment or acquisition.

In addition, calculating levered cash flow can be useful when evaluating the financial health of a company that is experiencing financial difficulties. By calculating levered cash flow, investors and lenders can get a better sense of the company's ability to generate cash and pay off its debts, and can make informed decisions about whether to provide additional financing or support.

In conclusion, levered cash flow is an important financial metric that can provide valuable insights into a company's financial health and performance. By understanding how to calculate levered cash flow, investors and lenders can make informed decisions about investments and financing, and can better evaluate the potential risks and rewards of different opportunities.

How Do You Calculate Levered Cash Flow in Odoo

Odoo 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 Odoo 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 Odoo, 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 Odoo 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 Odoo 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.