Levered Free Cash Flow

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Dictionary Says

Definition of 'Levered Free Cash Flow'

The amount of cash that is left over for stockholders after interest on company debt has been paid out. Levered free cash flow plays an integral role in a business because cash can be used to pay dividends, pay for expansion or take on more debt for growth opportunities.
Investopedia Says

Investopedia explains 'Levered Free Cash Flow'

Levered free cash flows are important to a company because it signals what sort of cash position it is in after interest on its debt has been paid off. For example, if a company generates large quantities of cash, most of which has to be used to pay off interest on debt, the cash generated might not be enough to sustain proper future operations.

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