Cash Available for Distribution Solution

STEP 0: Pre-Calculation Summary
Formula Used
Cash Available for Distribution = Funds from Operations+Non-Recurring Items-Capital Expenditures
CAD = FFO+NRI-CAPEX
This formula uses 4 Variables
Variables Used
Cash Available for Distribution - Cash Available for Distribution quantifies the cash on hand that a real estate investment trust (REIT) can distribute in the form of dividends to shareholders.
Funds from Operations - Funds from Operations is a financial metric primarily used by real estate investment trusts (REITs) and other similar entities to measure the cash generated from their core operations.
Non-Recurring Items - Non-Recurring Items are financial events or transactions that are not expected to recur in the foreseeable future and are considered non-operational or extraordinary in nature.
Capital Expenditures - Capital Expenditures refer to the funds that a company invests in acquiring, upgrading, or maintaining long-term assets.
STEP 1: Convert Input(s) to Base Unit
Funds from Operations: 360000 --> No Conversion Required
Non-Recurring Items: 430000 --> No Conversion Required
Capital Expenditures: 310000 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
CAD = FFO+NRI-CAPEX --> 360000+430000-310000
Evaluating ... ...
CAD = 480000
STEP 3: Convert Result to Output's Unit
480000 --> No Conversion Required
FINAL ANSWER
480000 <-- Cash Available for Distribution
(Calculation completed in 00.004 seconds)

Credits

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Created by Vishnu K
BMS College of Engineering (BMSCE), Bangalore
Vishnu K has created this Calculator and 200+ more calculators!
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Cash Available for Distribution Formula

​LaTeX ​Go
Cash Available for Distribution = Funds from Operations+Non-Recurring Items-Capital Expenditures
CAD = FFO+NRI-CAPEX

What is Cash Available for Distribution?

Cash Available for Distribution represents the cash generated from the company's operations that is available for distribution to investors without compromising the company's ability to maintain or grow its operations.
The calculation of CAFD typically starts with a company's net income and then makes adjustments for non-cash expenses, changes in working capital, and capital expenditures to arrive at the cash available for distribution.
CAFD is a critical metric for investors in MLPs and similar entities because it provides insights into the company's ability to generate cash flow that can be distributed to shareholders or unitholders. A company with strong and stable CAFD can be attractive to income-oriented investors seeking consistent cash distributions. However, it's essential to consider other factors, such as the company's growth prospects, financial stability, and industry trends, when evaluating an investment based on CAFD.

How to Calculate Cash Available for Distribution?

Cash Available for Distribution calculator uses Cash Available for Distribution = Funds from Operations+Non-Recurring Items-Capital Expenditures to calculate the Cash Available for Distribution, The Cash Available for Distribution is a financial metric used primarily by master limited partnerships (MLPs) and other similar entities to measure the cash flow available to be distributed to shareholders or unitholders after covering all operating expenses, capital expenditures, and debt service requirements. Cash Available for Distribution is denoted by CAD symbol.

How to calculate Cash Available for Distribution using this online calculator? To use this online calculator for Cash Available for Distribution, enter Funds from Operations (FFO), Non-Recurring Items (NRI) & Capital Expenditures (CAPEX) and hit the calculate button. Here is how the Cash Available for Distribution calculation can be explained with given input values -> 480000 = 360000+430000-310000.

FAQ

What is Cash Available for Distribution?
The Cash Available for Distribution is a financial metric used primarily by master limited partnerships (MLPs) and other similar entities to measure the cash flow available to be distributed to shareholders or unitholders after covering all operating expenses, capital expenditures, and debt service requirements and is represented as CAD = FFO+NRI-CAPEX or Cash Available for Distribution = Funds from Operations+Non-Recurring Items-Capital Expenditures. Funds from Operations is a financial metric primarily used by real estate investment trusts (REITs) and other similar entities to measure the cash generated from their core operations, Non-Recurring Items are financial events or transactions that are not expected to recur in the foreseeable future and are considered non-operational or extraordinary in nature & Capital Expenditures refer to the funds that a company invests in acquiring, upgrading, or maintaining long-term assets.
How to calculate Cash Available for Distribution?
The Cash Available for Distribution is a financial metric used primarily by master limited partnerships (MLPs) and other similar entities to measure the cash flow available to be distributed to shareholders or unitholders after covering all operating expenses, capital expenditures, and debt service requirements is calculated using Cash Available for Distribution = Funds from Operations+Non-Recurring Items-Capital Expenditures. To calculate Cash Available for Distribution, you need Funds from Operations (FFO), Non-Recurring Items (NRI) & Capital Expenditures (CAPEX). With our tool, you need to enter the respective value for Funds from Operations, Non-Recurring Items & Capital Expenditures and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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