Cash Available for Distribution Calculator

✖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.ⓘ Funds from Operations [FFO]			+10% -10%
✖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.ⓘ Non-Recurring Items [NRI]			+10% -10%
✖Capital Expenditures refer to the funds that a company invests in acquiring, upgrading, or maintaining long-term assets.ⓘ Capital Expenditures [CAPEX]			+10% -10%

✖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.ⓘ Cash Available for Distribution [CAD]

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Formula

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Cash Available for Distribution

Formula

`"CAD" = "FFO"+"NRI"-"CAPEX"`

Example

`"480000"="360000"+"430000"-"310000"`

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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)

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Credits

Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has created this Calculator and 200+ more calculators!

Verified by Aashna

IGNOU (IGNOU), India

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< 17 Asset Management Calculators

Seller's Discretionary Earnings

Go Seller Discretionary Earnings = Pre-Tax Income+Owner's Salary+Net Interest Expenses+Depreciation and Amortization+Discretionary Expenses+Non Recurring Expenses

Amortization of Intangible Assets

Go Amortization Expense = (Historical Cost of Intangible Asset-Residual Value)/Useful Life Assumption

Cash Available for Distribution

Go Cash Available for Distribution = Funds from Operations+Non-Recurring Items-Capital Expenditures

Residual Income

Go Residual Income = Operating Income-Minimum Required Rate of Return*Average Operating Assets

Net Capital Spending

Go Net Capital Spending = Ending Net Fixed Assets-Beginning Net Fixed Assets+Depreciation

Capital Structure

Go Capital Structure = Common Equity Weight+Debt Weight+Preferred Stock Weight

Allowance Method of Doubtful Accounts

Go Net Accounts Receivables = Gross Accounts Receivables-Allowance for Doubtful Accounts

Operating Working Capital

Go Operating Working Capital = Operating Current Assets-Operating Current Liabilities

Inventory Write-Down

Go Inventory Write Down = Historical Cost-Lower of Cost or Net Realizable Value

Net Realizable Value

Go Lower of Cost or Net Realizable Value = Expected Sale Price-Disposal Costs

Net Identifiable Assets

Go Net Identifiable Assets = Identifiable Assets-Total Liabilities

Expense Ratio

Go Expense Ratio = Annual Operating Expenses/Average Fund Assets

Inventory Days

Go Inventory Days = (Average Inventory/Cost Of Goods Sold)*365

Basic Earnings Power Ratio

Go Basic Earnings Power Ratio = Operating Income/Total Assets

Internal Growth Rate

Go Internal Growth Rate = Retention Ratio*Return on Assets

Depreciable Cost of Asset

Go Depreciable Cost = Purchase Cost-Salvage Value

Conversion Price

Go Conversion Price = Par Value/Conversion Ratio

Cash Available for Distribution Formula

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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