"""
Executive Summary: Calculates Distributable Cash Flow (DCF) for Master Limited Partnerships (MLPs) by adjusting Net Income for non-cash items and maintenance CapEx.
"""
from __future__ import annotations
from datetime import datetime, timezone
from skills.utils import log_lesson
TOOL_META = {
"name": "mlp_distributable_cash_flow_calc",
"tier": "free",
"description": "Calculates Distributable Cash Flow (DCF) and coverage ratios for Master Limited Partnerships.",
}
def mlp_distributable_cash_flow_calc(net_income: float, dda: float, maintenance_capex: float, distributions_paid: float) -> dict:
"""Calculate MLP Distributable Cash Flow.
Args:
net_income: Net Income reported
dda: Depreciation, Depletion, and Amortization (non-cash add-back)
maintenance_capex: Capital expenditures required to maintain current assets
distributions_paid: Total distributions paid to unitholders
"""
try:
ts = datetime.now(timezone.utc)
# Simplified DCF formula
dcf = net_income + dda - maintenance_capex
coverage_ratio = dcf / distributions_paid if distributions_paid > 0 else 0.0
return {
"status": "success",
"data": {
"net_income": net_income,
"dda_addback": dda,
"maintenance_capex": maintenance_capex,
"distributable_cash_flow_dcf": round(dcf, 2),
"distributions_paid": distributions_paid,
"coverage_ratio": round(coverage_ratio, 2),
"distribution_safety": "Safe" if coverage_ratio >= 1.2 else ("At Risk" if coverage_ratio < 1.0 else "Adequate")
},
"timestamp": ts.isoformat()
}
except Exception as e:
log_lesson(f"mlp_distributable_cash_flow_calc: {e}")
return {
"status": "error",
"error": str(e),
"timestamp": datetime.now(timezone.utc).isoformat()
}
