Fintech Data Platform Leader Calcbench Announces New Corporate Debt Report
Total debt for S&P 500 non-financial corporations
Financial analysts should be prepared for a company’s debt calculation…. Information buried deep in the company’s records, such as contingencies, debt instruments, interest rates, and maturity dates can help analysts understand which firms may have a significant impact on profitability.
NEW YORK (PRWEB)
11 January 2023
Calcbench, the leading interactive financial research platform for data-intensive analysts, today announced the release of its latest report reviewing corporate debt pressures. The report, which examines 22 non-financial S&P 500 companies that submitted their annual reports last fall, examines the consequences of increasing interest rates on companies’ balance sheets. The report examines which companies have significant debt maturing, which debt levels can affect operations, and how higher interest expenses can affect the result.
From 2016 to 2021, the total debt of all non-financial firms in the S&P 500 increased 36 percent to $5.49 trillion. Total interest costs also rose by 35.3 per cent in the same period, to 184.8 billion dollars. The 22 firms we studied had total debt of $248.3 billion, a fraction of the debt held by non-financial firms in the S&P 500. However, among the 22 firms, 35.3 percent ($95 billion) of their total debt will mature over the next five years, giving us a proxy view of what’s to come as we head into the first quarter of 2023 and expect the bulk of annual reports to be filed.
For the 22 firms in our study, the weighted average interest rate for debt maturing in the next five years ranged from 2.38 percent to 3.22 percent. With corporate interest rates around 5 percent, it could be a rude awakening as companies refinance their debt at higher interest rates. The possibility of more corporate debt defaults also looms.
“Financial analysts should be prepared for a corporate debt calculation in the next few years,” says Pranav Ghai, co-founder and CEO of Calcbench. “Information buried deep in corporate records, such as contingencies, debt instruments, interest rates and maturity dates, can help analysts understand which firms may have a significant impact on profitability.”
In fact, in its debt report, Calcbench reviewed several specific firms that could feel the pain of higher interest rates. Calcbench observed that Atmos Energy, Seagate Technology, Fox Corp,, Sysco and Oracle all already have annual interest costs exceeding 10 percent of net income – and now face debt refinancing in 2023 and beyond in a world of significantly higher interest rates. These companies will not be alone.
Download the full Calcbench corporate debt report at:
About Calcbench
Calcbench is a financial computing platform designed for better performance. Founded in 2011, the company uses the latest technology to offer immediate and systematic access to all data (numbers and text) in the financial statements, including the details hidden in the footnotes. Developed by former analysts and backed by a team of financial experts, Calcbench was built for data analytics that want to go deeper. Visit to learn more.
Share the article on social media or email:
