Debt schedule
A company's capital is made up of debt and equity, and most businesses try to maintain a steady ratio between debt and equity (a leverage ratio). The debt schedule is part of our forecast of capital structure.
The following list shows our current agenda:
- Record the historical profit and loss accounts and balance sheet
- Calculate the historical growth drivers
- Project the growth drivers for the profit and loss accounts and balance sheet
- Build up the projected profit and loss accounts and balance sheet
- Prepare the asset and depreciation schedule
- Prepare the debt schedule
- Prepare the cash flow statement
- Ratio analysis
- DCF valuation
- Other valuations
- Scenario analysis
As with fixed assets, forecasting debt can be done in one of two ways: a detailed, complex, more accurate method, or a quick and simple less accurate method.
In addition, we need to consider the treatment of interest. The question is, do we take...