Cost of debt service
The cash a company must pay each period for interest and principal. The real constraint on free cash flow in any leveraged deal.
Cost of debt service at Hanil Widget Works
Hanil Widget Works’ fiscal 2022 profile shows annual interest expense of $1.1m; the profile does not disclose scheduled principal repayments, so full debt service cannot be computed from it.
Shayne Fitz-Coy’s definition of Cost of debt service
4 whole years ago, you could get loans at 4% or 5%, and today we’re looking at more like 8% to 10% depending on the business.
Terms Related to Cost of debt service
Interest coverage · Debt/EBITDA multiple · Vendor financing · Zero interest rate policy (ZIRP) · All of the glossary