Cash Flow Reconciliation Template

Cash Flow Reconciliation Template

This cash flow reconciliation template will help you differentiate between EBITDA, CF, FCF, and FCFF.

Below is a preview of the cash flow reconciliation template:

Download the Free Template

Enter your name and email in the form below and download the free template now!

EBITDA vs. Cash Flow vs. Free Cash Flow vs. Unlevered Free Cash Flow

There are major differences between EBITDAEBITDAEBITDA or Earnings Before Interest, Tax, Depreciation, Amortization is a company's profits before any of these net deductions are made. EBITDA focuses on the operating decisions of a business because it looks at the business’ profitability from core operations before the impact of capital structure. Formula, examples, Cash FlowCash FlowCash Flow (CF) is the increase or decrease in the amount of money a business, institution, or individual has. In finance, the term is used to describe the amount of cash (currency) that is generated or consumed in a given time period. There are many types of CF, Free Cash FlowFree Cash Flow (FCF)Free Cash Flow (FCF) measures a company’s ability to produce what investors care most about: cash that's available be distributed in a discretionary way, and Free Cash Flow to FirmUnlevered Free Cash FlowUnlevered Free Cash Flow is a theoretical cash flow figure for a business, assuming the company is completely debt free with no interest expense..

#1 EBITDA

EBITDA can be easily calculated off the income statementIncome StatementThe Income Statement is one of a company's core financial statements that shows their profit and loss over a period of time. The profit or by adding to the net incomeNet IncomeNet Income is a key line item, not only in the income statement, but in all three core financial statements. While it is arrived at through the taxes, interest, depreciationDepreciation ExpenseWhen a long-term asset is purchased, it should be capitalized instead of being expensed in the accounting period it is purchased in. It is & amortization.

#2 Cash Flow (from Operations, levered)

Operating Cash FlowCash FlowCash Flow (CF) is the increase or decrease in the amount of money a business, institution, or individual has. In finance, the term is used to describe the amount of cash (currency) that is generated or consumed in a given time period. There are many types of CF is a measure of cash generated by a business from its normal operating activities. Like EBITDA, depreciation and amortization are added back to cash from operations.  However, all other non-cash items like stock-based compensation, unrealized gains/losses, or write-downs are also added back.

Unlike EBITDA, cash from operations includes changes in net working capitalNet Working CapitalNet Working Capital (NWC) is the difference between a company's current assets (net of cash) and current liabilities (net of debt) on its balance sheet. items like accounts receivable, accounts payable, and inventory.

Operating cash flow does not include capital expenditures.

#3 Free Cash Flow (FCF)

Free Cash FlowFree Cash Flow (FCF)Free Cash Flow (FCF) measures a company’s ability to produce what investors care most about: cash that's available be distributed in a discretionary way, also referred to as “Levered Free Cash Flow” or “Cash Flow to Equity”, can be easily derived from the statement of cash flows by taking operating cash flow and deducting capital expenditures.

FCF is the amount of cash flow available for discretionary spending by management/shareholders.

#4 Free Cash Flow to the Firm (FCFF)

Free Cash Flow to the Firm (also called Unlevered Free Cash FlowUnlevered Free Cash FlowUnlevered Free Cash Flow is a theoretical cash flow figure for a business, assuming the company is completely debt free with no interest expense.) requires a multi-step calculation and is used in Discounted Cash FlowDiscounted Cash Flow DCF FormulaThis article breaks down the DCF formula into simple terms with examples and a video of the calculation. Learn to determine the value of a business. analysis to arrive at the Enterprise Value. It is calculated based on the assumption that the firm was to have no debt.

More Free Templates

For more resources, check out our business templates library to download numerous free Excel modeling, PowerPoint presentation, and Word document templates.

• Excel Modeling TemplatesExcel & Financial Model TemplatesDownload free financial model templates - CFI's spreadsheet library includes a 3 statement financial model template, DCF model, debt schedule, depreciation schedule, capital expenditures, interest, budgets, expenses, forecasting, charts, graphs, timetables, valuation, comparable company analysis, more Excel templates
• PowerPoint Presentation Templates
• Transaction Document TemplatesTemplatesFree business templates to use in your personal or professional life. Templates include Excel, Word, and PowerPoint. These can be used for transactions,