Cover Image for RULE #1 QUESTION OF THE WEEK: LEVERED FREE CASH FLOW

RULE #1 QUESTION OF THE WEEK: LEVERED FREE CASH FLOW

Phil Town
Phil Town

This week's Question is from Greg in Lancaster, PA:

Q: Yahoo reports "levered free cash flow". What exactly does this mean? Thanks.

A: It's what's left of free cash flow after the business pays the interest on debt and any dividends to preferred shareholders.