How To Calculate Levered Cash Flow in Sage 300 | Arithmix

Calculating levered cash flow is an important financial analysis tool that helps businesses understand their financial health. Levered cash flow is the cash flow generated by a company after paying its financial obligations, including interest and debt payments. In other words, it is the cash flow available to equity investors after all the financial obligations have been met.

Calculating levered cash flow in Sage 300 is a straightforward process. First, you need to determine the net income of your business. This can be found on your income statement. Next, you need to add back any non-cash expenses, such as depreciation and amortization. Then, you need to subtract any increases in working capital, such as accounts receivable and inventory. Finally, you need to subtract any capital expenditures and debt payments.

Once you have calculated your levered cash flow, you can use it to make important financial decisions. For example, you can use it to determine the amount of cash available to pay dividends or to invest in new projects. You can also use it to determine the amount of debt your business can safely take on.

What Is Levered Cash Flow?

Levered cash flow is a financial metric that measures the cash flow generated by a company after paying its financial obligations. It is an important metric because it takes into account the company's debt and interest payments, which can have a significant impact on the company's financial health.

Levered cash flow is different from unlevered cash flow, which measures the cash flow generated by a company before taking into account its debt and interest payments. Unlevered cash flow is useful for comparing companies with different capital structures, while levered cash flow is useful for analyzing the financial health of a company with a specific capital structure.

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 can use levered cash flow to determine the amount of cash available to pay dividends or to invest in new projects. You can also use it to determine the amount of debt the company can safely take on.

Levered cash flow is also useful for analyzing the financial health of a company. By calculating levered cash flow, you can determine whether a company has enough cash flow to meet its financial obligations, including debt and interest payments. This can help you make informed decisions about whether to invest in the company or to lend it money.

Overall, levered cash flow is an important financial metric that can help businesses make informed financial decisions. By understanding how to calculate levered cash flow in Sage 300, businesses can gain valuable insights into their financial health and make informed decisions about their future.

How Do You Calculate Levered Cash Flow in Sage 300

Sage 300 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 Sage 300 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 Sage 300, 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 Sage 300 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 Sage 300 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.