Term · Balance Sheet & Debt
Debt Maturity Profile
In briefThe maturity profile assigns financial liabilities to the times at which they must be repaid or refinanced. For small-caps, even a single large maturity can shape refinancing risk more than the absolute level of debt.
Definition
The maturity profile shows when financial liabilities must be repaid or refinanced.
How it is calculated
Formula. Presentation of contractual repayments by time bands, supplemented by interest, credit lines, and, where applicable, lease liabilities.
Why it matters for small caps
For small-caps, a single large maturity can determine refinancing risk more than the absolute level of debt.
Common misreadings
- A comfortable net debt metric says little if high repayments are due in the short term or committed credit lines are expiring.
In the process
Frequently asked
What is a debt maturity profile?
It assigns a company's debt to the times of its repayment. Interest, credit lines, and in part lease liabilities also belong to it as supplements.
How do you use the maturity profile?
You look at the repayments by time bands in order to identify refinancing peaks. This reveals in which years particular financing pressure arises.
Why is net debt alone not enough?
A comfortable net debt metric says little if high repayments are due in the short term. Expiring credit lines, too, can quickly aggravate the situation.
Related terms
Sources
Primary
IFRS Foundation – IFRS 7 Financial Instruments: Disclosures
https://www.ifrs.org/issued-standards/list-of-standards/ifrs-7-financial-instruments-disclosures/
https://www.ifrs.org/issued-standards/list-of-standards/ifrs-7-financial-instruments-disclosures/
Methodology
IFRS Foundation – IFRS 16 Leases
https://www.ifrs.org/issued-standards/list-of-standards/ifrs-16-leases/
https://www.ifrs.org/issued-standards/list-of-standards/ifrs-16-leases/
Education only, not investment advice. Ranges and thresholds are didactic orientation values, not an official standard.