Free Quarterly Debt Analysis Sheet Template
Quarterly Debt Analysis Sheet
Prepared by: [YOUR NAME]
Company: [YOUR COMPANY NAME]
Date: September 30, 2054
1. Executive Summary
This Quarterly Debt Analysis Sheet provides an overview of the debt status for [Your Company Name] as of September 30, 2054. The company’s total debt decreased by 5% compared to the previous quarter, with a focus on reducing short-term borrowings while maintaining stable long-term debt levels. The company made substantial progress in servicing its debt obligations, with a notable reduction in interest payments for the quarter. The Debt Service Coverage Ratio (DSCR) remains healthy, indicating strong operational cash flow to cover debt servicing requirements.
2. Debt Summary
|
Debt Type |
Beginning Balance |
New Borrowings |
Repayments/ Reductions |
Ending Balance |
|---|---|---|---|---|
|
Short-term Debt |
$2,500,000 |
$500,000 |
$800,000 |
$2,200,000 |
|
Long-term Debt |
$8,000,000 |
$0 |
$200,000 |
$7,800,000 |
|
Total Debt |
$10,500,000 |
$500,000 |
$1,000,000 |
$10,000,000 |
Note: The ending balance reflects the company’s debt as of September 30, 2054, with reductions in both short-term and long-term debt compared to the previous quarter.
3. Debt Service Coverage Ratio (DSCR)
|
Indicator |
Quarter 1 |
Quarter 2 |
Quarter 3 |
Quarter 4 |
|---|---|---|---|---|
|
Net Operating Income |
$1,000,000 |
$1,200,000 |
$1,500,000 |
$1,600,000 |
|
Total Debt Service |
$300,000 |
$310,000 |
$320,000 |
$340,000 |
|
Debt Service Coverage Ratio (DSCR) |
3.33 |
3.87 |
4.69 |
4.71 |
Interpretation: The DSCR has improved steadily over the past three quarters, indicating a strong ability to meet debt obligations from operating income. A DSCR above 3 is considered excellent.
4. Interest Expense Breakdown
|
Debt Type |
Interest Rate (%) |
Interest Expense |
Notes |
|---|---|---|---|
|
Short-term Debt |
5.00% |
$50,000 |
Interest in revolving credit facility. |
|
Long-term Debt |
4.75% |
$120,000 |
Interest on 10-year bonds. |
|
Total |
$170,000 |
5. Debt Maturity Schedule
|
Year |
Debt Type |
Principal Due |
Interest Due |
Total Payments |
|---|---|---|---|---|
|
2055 |
Short-term Debt |
$1,000,000 |
$50,000 |
$1,050,000 |
|
2056 |
Long-term Debt |
$200,000 |
$120,000 |
$320,000 |
|
2057 |
Long-term Debt |
$300,000 |
$120,000 |
$420,000 |
|
Total |
$1,500,000 |
$290,000 |
$1,790,000 |
Note: The maturity schedule reflects principal and interest payments over the next three years, with a heavier debt load due in 2055.
6. Key Ratios and Metrics
|
Metric |
Value |
Benchmark |
Analysis |
|---|---|---|---|
|
Leverage Ratio |
1.5 |
2.0 |
The company’s debt-to-equity ratio is below the benchmark. |
|
Interest Coverage Ratio |
7.1 |
5.0 |
Strong interest coverage, well above the industry norm. |
|
Debt-to-EBITDA |
2.5 |
3.0 |
EBITDA comfortably covers debt obligations. |
|
Debt-to-Assets |
0.45 |
0.5 |
A low debt-to-assets ratio, indicating a solid asset base. |
7. Conclusion and Recommendations
[Your Company Name] has demonstrated effective debt management in the third quarter of 2054, with a reduction in overall debt and strong operating income supporting its debt obligations. The company is in a favorable financial position to continue servicing its debt without significant risk.
Recommendations
-
Continue to reduce short-term borrowings to enhance liquidity.
-
Explore refinancing options for long-term debt to further reduce interest expenses.
-
Maintain strong operational cash flow to ensure continued debt servicing capability.
