Debt can be modeled several different ways when building a financial model, depending on the situation and the level of detail required. The following methods can be used to model debt: (1) following a fixed repayment schedule, (2) assuming debt is held constant, (3) making an assumption about how much leverage a firm will have in the future. The method used will largely depend on how much information you are able to access.
CFI is the official global provider of financial modeling and valuation analyst FMVA Designation. CFI's mission is to help anyone become a world-class financial analyst and has a wide range of resources to help you along the way. In order to become a great financial analyst, below are some additional questions and answers for you to explore further:
Below is a screenshot from one of CFI’s online analyst training and certification courses, offered 100% online.
To learn How to Build an Excel Model step-by-step, click on the image below.