Debt Service If Not Fully Paid
Hi everyone, I have a question on debt service. Suppose the debt service in 2014 was 100m according to 2013 Financial statements and 90m based on 2012 financial statements (the number of debt schedule changed because the company did not fully paid the debt service in FY13). And in fact, the company only paid 50m in 2014. Then, what is the debt service for this year? My understanding is that, the actual debt service for the year is 50m, so in fcf calculation, I will use 50m to generate fcf after debt service. And when people ask me about the debt service in 2014, I should answer 50m. And for the debt service coverage ratio, I need to use 100m as denominator. Correct me if I am wrong. Thank you.
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