Levered FCF - Mandatory Debt Payments

Hi All,

I'm learning technicals for IB interviews coming up, and I was encountering a finance problem on levered free cash flows. Does mandatory debt payments in LFCF, include only principal payments? Or do they include both interest and principal payments?

Thanks in advance.

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2 Comments

TREBITDA

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4y

If starting from Net Income, then mandatory payments includes just principal as interest was already captured in net income

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Corporate Raider

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4y

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Levered FCF - Mandatory Debt Payments

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Levered FCF - Mandatory Debt Payments

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