Debt Burden
Short definition
Debt burden is how much interest and principal take of operating cash or of sales. It is close to the inverse of DSCR; a heavy burden cuts cash left for capex and dividends.
Detailed explanation
Interest/sales ignores principal; service/CFADS is the full burden. Inflation and FX gap the local-currency burden on FX principal.
Whether a burden is sustainable depends on cash-flow stability. The same burden is carryable on stable cash and breaks on a cyclical name. There is no universal cap.
Why it matters for the CFO
If the interest line grows while capex and opex are cut, burden has jumped the investment queue. That is a quiet strategy change.
How it is calculated
Borç yükü ≈ Borç servisi / CFADS veya Faiz / Satış (veya FAVÖK)
Variables in the formula
- Burden: Service or interest / cash or sales
How to read it
Service/CFADS = 1/DSCR. A 67% burden is the same arithmetic as 1.50x DSCR — not a threshold, the inverse of the same fact.
Numerical example
Debt service 100 mn TL, CFADS 150 mn TL → burden = 100 / 150 = 67% (DSCR 1.50x).
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What to learn next
Definitions are educational. They are not investment, credit or tax advice.