Levered Free Cash Flow (LFCF)

Levered free cash flow (LFCF) is the amount of money a company has left remaining after paying all of its financial obligations. Levered free cash flow is important to both investors and company management, because it is the amount of cash that a company can use to pay dividends to shareholders and/or to make further investments in growing the company’s business. The amount of levered cash flow a company has can be negative even though operating cash flow is positive. This occurs when the amount of operating cash flow a company generates is insufficient to cover all of the financial obligations.