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TERM OF THE DAY

Unlevered free cash flow (UFCF) is a company's cash flow before taking interest payments into account. Unlevered free cash flow can be reported in a company's financial statements or calculated using financial statements by analysts. Unlevered free cash flow shows how much cash is available to the firm before taking financial obligations into account.

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Levered free cash flow (LFCF) is the money that remains after a company has paid its debt obligations and set aside capital for operations. Read more

EBITDA: Definition, Calculation Formulas, History, and Criticisms

EBITDA, or earnings before interest, taxes, depreciation, and amortization, is an alternative measure of a company's overall financial performance. Read more

Capital Expenditure (CapEx) Definition, Formula, and Examples

Capital expenditures (CapEx) are funds used by a company to acquire or upgrade physical assets such as property, buildings, or equipment. Read more

Understanding Levered vs. Unlevered Free Cash Flow

The difference between levered cash flow and unlevered free cash flow can determine if a business has the means or financial ability to expand its operations. Read more

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