Levered Free Cash Flow Calculator
Calculate cash available to equity holders after debt payments
Calculate Levered Free Cash Flow
Earnings before interest, taxes, depreciation, and amortization
Cash spent on property, plant, and equipment
Positive = cash inflow, Negative = cash outflow
Required principal and interest payments
Levered Free Cash Flow Results
Component Breakdown
Example: NVIDIA 2019
Input Data
EBITDA: $4,066M
NWC Change: -$857M
CapEx: -$600M
Debt Payments: -$16M
Calculation
LFCF = $4,066M + (-$857M) - $600M - $16M
LFCF = $2,593M
Strong positive cash flow for shareholders
LFCF Components
EBITDA
Operating cash generation
Working Capital
Cash from operations
CapEx
Asset investments
Debt Payments
Mandatory obligations
Analysis Tips
Positive LFCF indicates cash available for shareholders
Look for consistent growth in LFCF over time
Compare with dividend payments and share buybacks
Consider reinvestment needs for future growth
Understanding Levered Free Cash Flow
What is Levered Free Cash Flow?
Levered Free Cash Flow (LFCF) represents the cash generated by a company after paying all operating expenses, capital expenditures, and mandatory debt payments. It shows the actual cash available to equity holders for dividends, acquisitions, or share buybacks.
Why is it Important?
- •Measures true cash generation available to shareholders
- •Indicates dividend sustainability and growth potential
- •Shows capacity for acquisitions and strategic investments
- •Helps assess financial flexibility and debt capacity
Formula Explanation
LFCF = EBITDA + Δ(NWC) - CapEx - Debt Payments
- EBITDA: Operating cash generation before financing
- Δ(NWC): Change in net working capital
- CapEx: Capital expenditures for growth and maintenance
- Debt Payments: Mandatory principal and interest payments
Key Insight: LFCF shows the residual cash after all obligations, making it the most relevant metric for equity investors.