How To Calculate Levered Free Cash Flow in Dynamics365 | Arithmix

Calculating levered free cash flow is an essential aspect of financial analysis for any business. It helps investors and analysts determine the amount of cash available to the company after accounting for its debt obligations. Levered free cash flow is a crucial metric for evaluating a company's financial health and its ability to generate cash for its shareholders.

What Is Levered Free Cash Flow?

Levered free cash flow is the amount of cash that a company generates from its operations after accounting for its debt obligations. It is a measure of a company's ability to generate cash that can be used to pay dividends, repay debt, or invest in new projects. Levered free cash flow takes into account the company's capital structure, including its debt and equity financing.

To calculate levered free cash flow, you need to subtract the company's capital expenditures and debt payments from its operating cash flow. The resulting figure represents the amount of cash that the company has available to distribute to its shareholders or reinvest in the business.

When Is It Valuable To Calculate Levered Free Cash Flow?

Calculating levered free cash flow is valuable for investors and analysts who want to evaluate a company's financial health and its ability to generate cash. It is particularly useful for companies that have a significant amount of debt, as it helps to determine whether the company has enough cash to meet its debt obligations.

Levered free cash flow is also valuable for companies that are considering new projects or investments. By calculating levered free cash flow, companies can determine whether they have enough cash to fund new projects without taking on additional debt or diluting their shareholders' equity.

Overall, calculating levered free cash flow is an important aspect of financial analysis for any business. It helps investors and analysts evaluate a company's financial health and its ability to generate cash, which is essential for long-term success.

How Do You Calculate Levered Free Cash Flow in Dynamics365

Dynamics365 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 Dynamics365 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 Dynamics365, 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 Dynamics365 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 Dynamics365 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.