How To Calculate Levered Cash Flow in HubSpot Sales Hub | Arithmix

Levered cash flow is an important financial metric that helps businesses understand their financial health. It is a measure of the cash flow that is available to the company's investors after all expenses and debt payments have been made. Calculating levered cash flow can be a bit tricky, but with the right tools and knowledge, it can be done easily and accurately.

What Is Levered Cash Flow?

Levered cash flow is the cash flow that is available to the company's investors after all expenses and debt payments have been made. It is a measure of the company's ability to generate cash flow from its operations, taking into account the impact of debt financing. Levered cash flow is important because it helps investors understand the company's financial health and its ability to pay dividends or buy back shares.

To calculate levered cash flow, you need to start with the company's net income and add back any non-cash expenses, such as depreciation and amortization. You then subtract any capital expenditures and debt payments to arrive at the levered cash flow.

When Is It Valuable To Calculate Levered Cash Flow?

Calculating levered cash flow is valuable in a number of situations. For example, if a company is considering taking on debt to finance a new project or acquisition, it is important to understand the impact that this debt will have on the company's cash flow. By calculating levered cash flow, the company can determine whether it will have enough cash flow to cover its debt payments and still generate a return for its investors.

Levered cash flow is also important for investors who are considering investing in a company. By understanding the company's levered cash flow, investors can determine whether the company is generating enough cash flow to support its debt payments and still provide a return on investment. Additionally, levered cash flow can help investors understand the company's ability to pay dividends or buy back shares.

In conclusion, calculating levered cash flow is an important financial metric that can help businesses and investors understand the company's financial health and its ability to generate cash flow. By using the right tools and knowledge, calculating levered cash flow can be done easily and accurately, providing valuable insights into the company's financial performance.

How Do You Calculate Levered Cash Flow in HubSpot Sales Hub

HubSpot Sales Hub 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 HubSpot Sales Hub 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 HubSpot Sales Hub, 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 HubSpot Sales Hub 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 HubSpot Sales Hub 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.