How To Calculate Levered Free Cash Flow in BQE CORE Suite | Arithmix

Levered Free Cash Flow (LFCF) is a financial metric that is used to determine the amount of cash that a company has available to pay its investors after all of its expenses have been paid. It is a valuable tool for investors who are looking to evaluate the financial health of a company and its ability to generate cash flow. Calculating LFCF can be a complex process, but with the right tools and knowledge, it can be done easily and accurately.

What Is Levered Free Cash Flow?

Levered Free Cash Flow is the amount of cash that a company has available to pay its investors after all of its expenses have been paid, including interest and taxes. It is calculated by subtracting the company's capital expenditures and debt payments from its operating cash flow. LFCF is an important metric because it takes into account the company's debt and interest payments, which can have a significant impact on its ability to generate cash flow.

Investors use LFCF to evaluate a company's financial health and its ability to generate cash flow. A company with a high LFCF is generally considered to be financially healthy and may be a good investment opportunity. On the other hand, a company with a low LFCF may be struggling financially and may not be a good investment opportunity.

When Is It Valuable To Calculate Levered Free Cash Flow?

Calculating LFCF is valuable in a variety of situations. For example, if you are an investor who is considering investing in a company, you may want to calculate its LFCF to determine whether it is a good investment opportunity. Similarly, if you are a financial analyst who is evaluating a company's financial health, you may want to calculate its LFCF to get a better understanding of its cash flow situation.

Calculating LFCF can also be valuable for companies themselves. By calculating their LFCF, companies can get a better understanding of their financial health and their ability to generate cash flow. This can help them make better financial decisions and plan for the future.

In conclusion, calculating LFCF is an important financial metric that can be used by investors, financial analysts, and companies themselves. With the right tools and knowledge, it can be done easily and accurately, providing valuable insights into a company's financial health and its ability to generate cash flow.

How Do You Calculate Levered Free Cash Flow in BQE CORE Suite

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

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

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