Principal Repayment
Short definition
Principal repayment is the cash outflow that cuts the debt stock. It is not a P&L expense; it sits in financing cash flow and in the DSCR denominator.
Detailed explanation
It is a scheduled instalment on an amortising loan, maturity day on a bullet, and an optional paydown on an RCF. New draws net against repayment; the cash budget should keep gross repayment visible.
Principal cuts FCFE, not FCFF (a financing choice). DSCR wants principal in the denominator; ICR does not.
Why it matters for the CFO
A profitable year can still gap cash because of principal. It is the large outflow most often missed in the 13-week budget.
How it is calculated
Anapara ödemesi = Dönem başı bakiye − Dönem sonu bakiye (+ yeni kullanım hariç)
Variables in the formula
- Principal: Period cash principal outflow
How to read it
Principal / gross debt is the period amortisation rate. A high ratio is a conservative structure or a wall year.
Numerical example
Opening 200 mn TL, new draws 0, closing 160 mn TL → principal repayment = 40 mn TL.
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What to learn next
Definitions are educational. They are not investment, credit or tax advice.