How To Calculate Levered Free Cash Flow in Salesforce | Arithmix

Levered Free Cash Flow (LFCF) is a financial metric used to measure the amount of cash a company generates after accounting for its debt obligations. It is an important metric for investors and analysts to determine the company's financial health and ability to pay dividends or invest in future growth. Calculating LFCF in Salesforce is a straightforward process that involves a few key steps.

What Is Levered Free Cash Flow?

Levered Free Cash Flow is the amount of cash a company generates after accounting for its debt obligations. It is calculated by subtracting the company's capital expenditures and debt payments from its operating cash flow. This metric is important because it shows how much cash a company has available to pay dividends, invest in future growth, or pay down debt. It is also a useful metric for investors and analysts to determine the company's financial health and ability to generate cash.

When Is It Valuable To Calculate Levered Free Cash Flow?

Calculating Levered Free Cash Flow is valuable in a variety of situations. For example, it can be useful for investors who are considering buying or selling a stock. By calculating LFCF, investors can get a better understanding of a company's financial health and ability to generate cash. It can also be useful for companies that are considering taking on debt or issuing new shares of stock. By calculating LFCF, companies can determine if they have enough cash to pay dividends, invest in future growth, or pay down debt.

Overall, calculating Levered Free Cash Flow is an important metric for investors and companies alike. It provides valuable insight into a company's financial health and ability to generate cash, which can be useful for making investment decisions or strategic business decisions. By following the steps outlined above, you can easily calculate LFCF in Salesforce and use this metric to make informed decisions about your investments or business operations.

How Do You Calculate Levered Free Cash Flow in Salesforce

Salesforce 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 Salesforce and build out dashboards.

What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers you'll powerful yet easy to use. With Arithmix you can import data from systems like Salesforce, 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 Salesforce 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 Salesforce 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.