Quarterly Debt Analysis Sheet Template
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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.
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