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Inputs

Debt Components:

  • Value
  • Issuing Date
  • Loan Period
  • Due Dates
  • Redemption Mode
  • Redemption Free Period
  • Redemption Frequency
  • Interest
  • Method of Payment

Calculation

Profit & Loss statement

 The Profit & Loss statement depends on the Interest Rate and on the book value of Debt from the previous period.
Interest Rate x Debt.Balance Sheet(t-1)

Cashflow statement

 The Cashflow statement depends on Due Dates.

Different Due Dates affect the Cashflow statement. Multiply Due Dates can be defined for Capex, Transaction Expenditures and Construction Loans. On these Due Dates there is a cash drain or a cash inflow.

When Capex expenditures with an amount of for example EUR 10'000'000 are necessary, these costs can be distributed on different Due Dates. The following table shows the defined Due Dates:

DriverValueUnitPercentage
Transaction0Month60
Transaction24Month25
Transaction36Month15

At Transaction 60% of Capex are due, 24 months later 25% and 36 months after Transaction the remaining 15%.

 12.201501.2016...11.201712.201701.2016...11.201812.201801.2019
Cashflow statement-10'000'000-6'0000000...0-2'500'0000...0-1'500'0000

 The Cashflow statement depends on the Redemption Mode (concerns Debt payback).

Linear Redemption

Debt Tranches and Shareholder Loans have to be redeemed. Therefor a Redemption Frequency and a Redemption Free Period is defined. When the Redemption Free Period expires the Debt/Shareholder Loan is redeemed during the Loan Period in regular intervals according to the Redemption Frequency.

When Debt with an amount of EUR 2'000'000, a Loan Period of 10 years, 24 months Redemption Free Period and a Redemption Frequency of 3 months is issued in 12 / 2015, the following Cashflow statement yields from this Debt and the connected Redemptions:

 12.201501.2016...03.201604.201605.201606.201607.201608.2016...09.202510.202511.202512.2025
Redemption02'000'0000...-62'50000-62'50000...-62'50000-62'500

The Redemption occurs within 8 years respective 96 months. Thus a monthly Redemption of EUR 20'883 is necessary. Based on the quarterly Redemptions, an amount of EUR 62'500 has to be redeemed every third month.

Annuity Redemption

When the debt is redeemed per annuity, the annual sum of Redemption amounts and Interest payments build a constant value. The Interest expense decline from year to year because the debt is getting less too. Therefore the Redemption amount has to increase to get an annuity Redemption.

The Annuity amount can be calculated with the following formula:

 


When Debt with an amount of EUR 2'000'000, a Loan Period of 10 years, 24 months Redemption Free Period and a Redemption Frequency of 3 months is issued in 12 / 2015, an annuity redemption amount of annually EUR 304'86 or quarterly EUR 76'216 yields.

 12.201501.2016...03.2016...03.201804.201805.201806.201807.201808.201809.2018...12.2025
Issuing2'000'0002'000'0000...0...0000000...0
Redemption-2'000'000-2'000'0000...0...-51'21600-51'85600-52'504...-75'275
Interest-638'90600...-25'000...-25'00000-24'3600023'712...-941
Sum 2'000'0000...-25'000...-76'21600-76'21600-76'216...-76'216


Bullet Redemption

When Bullet Redemption is selected as Redemption Mode the whole loan is redeemed at the end of the loan period.

When Debt with an amount of EUR 2'000'000 and a Loan Period of 10 years is issued in 12 / 2015, the whole amount of EUR 2'000'000 is redeemed in 12 / 2025.

 12.201501.2016...03.201804.201605.201606.201607.201608.2016...09.202510.202511.202512.2025
Redemption02'000'0000...000000...000-2'000'000

 The Cashflow statement depends on the Method of Payment (concerns Interest payments on Debt).

Balance Sheet

 The Balane Sheet yields from the Balance Sheet logic.

The Balance Sheet gets calculated from the closing Balance Sheet of the previous period and from the difference between the Profit & Loss statement and the Cashflow statement of the actual period.

Balance Sheet(t) = Balance Sheet(t - 1) + Profit & Loss statement(t) - Cashflow statement(t)

The following example explains this functionality:

 01.201602.201603.201604.201605.201606.201607.201608.201609.201610.201611.201612.2016
Profit & Loss statement48444444444444
Cashflow statement480012001200120012
Balance Sheet 480480480480

For 06 / 2016 the book value is calculated as follows:

Balance Sheet(06.2016) = 8 + 4 - 12 = 0