Free Cash Flows FCF Unlevered vs Levered Financial Edge
LFCF provides insights into a company’s ability to service its debt obligations and fund potential growth initiatives. Thus, the unlevered free cash flow formula includes the conversion of EBITDA to unlevered free cash flow by deducting any capital expenditures, taxes, and expenditures incurred for non-cash working capital (NWC). Specifically, NWC includes a company’s...