What is generally higher, LFCF or UFCF? Can LFCF ever be greater?

Answer

UFCF is generally higher because it's pre-interest. LFCF = UFCF − After-Tax Interest Expense + Net Debt Issuance. In a typical year with no net new debt and meaningful interest expense, LFCF < UFCF. LFCF can exceed UFCF when: (1) the company issues meaningful new debt (cash inflow boosts LFCF); (2) interest income exceeds interest expense (net interest is positive); (3) a tax refund or unusual tax item benefits levered NI specifically.