Liability Adjusted Cash Flow Yield - LACFY

Liabilities are essentially what a company owes. Money borrowed, bills it needs to pay, amounts owed to pension plans, etc....these things count as liabilities.

Meanwhile, cash flow represents the amount of cash a company generates. It’s a profit metric that doesn’t take into account non-cash items, like depreciation or goodwill impairments.

LACFY tracks the relationship between these concepts. The figure answers the question, “How much does the company owe compared to the amount of cash it generates?” Since a company ultimately needs cash to pay off liabilities, LACFY tests how well-positioned a company is to manage its debts.