SELECT id, `name`, primary_key, `key`, treemapgroup, name_cn, zacks_table_name, compare_key, compare_display_name from gurufocu_main.financial_definition where termpagedisplay=1 and `key` = 'Long-Term Debt'
MAIN (Main Street Capital) Long-Term Debt & Capital Lease O
Long-Term Debt & Capital Lease Obligation is the debt and capital lease obligation due more than 12 months in the future. Main Street Capital's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $1,802.3 Mil.
Warning Sign:
Main Street Capital Corp has been issuing new debt. Over the past 3 years, it issued USD 596.2 million of debt. But overall, its debt level is acceptable.
LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. It is calculated as a company's Long-Term Debt & Capital Lease Obligation divides by its Total Assets. Main Street Capital's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $1,802.3 Mil. Main Street Capital's Total Assets for the quarter that ended in Dec. 2023 was $4,443.6 Mil. Main Street Capital's LT-Debt-to-Total-Asset for the quarter that ended in Dec. 2023 was 0.41.
Main Street Capital's LT-Debt-to-Total-Asset
declined
from Dec. 2022 (0.47) to Dec. 2023 (0.41).
It may suggest that Main Street Capital is progressively becoming less dependent on debt to grow their business.
Main Street Capital Long-Term Debt & Capital Lease Obligation Historical Data
The historical data trend for Main Street Capital's Long-Term Debt & Capital Lease Obligation can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
Main Street Capital Annual Data
Trend
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Long-Term Debt & Capital Lease Obligation
1,114.01
1,208.63
1,796.06
1,999.10
1,802.34
Main Street Capital Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Long-Term Debt & Capital Lease Obligation
1,999.10
1,989.64
2,021.50
1,934.92
1,802.34
Main Street Capital Long-Term Debt & Capital Lease Obligation Calculation
Long-Term Debt is the debt due more than 12 months in the future. The debt can be owed to banks or bondholders. Some companies issue bonds to investors and pay interest on the bonds.
Long-Term Capital Lease Obligation represents the total liability for long-term leases lasting over one year. It's amount equal to the present value (the principal) at the beginning of the lease term less lease payments during the lease term.
The interest paid on companies' debt is reflected in the income statement as interest expense. If a company has too much debt and it cannot serve the interest payment on the debt or repay the matured debt, the company risks bankruptcy. Peter Lynch famously said: A company that does not have debt cannot go bankrupt.
A company's long term debt may have different dates of maturity and interest rates, depending on the terms.
Usually a company issues long term debt to pay for its capital expenditures. Borrowing allows the company to do things that otherwise cannot be done with only the capital it has. But debt can be risky.
Main Street Capital (NYSE:MAIN) Long-Term Debt & Capital Lease Obligation Explanation
LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. A year-over-year decrease in this metric would suggest the company is progressively becoming less dependent on debt to grow their business.
Main Street Capital's LT-Debt-to-Total-Asset ratio for the quarter that ended in Dec. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Buffett says that durable competitive advantages carry little to no long-term debt because the company is so profitable that even expansions or acquisitions are self financed.
We are interested in long term debt load for the last ten years. If the ten years of operation show little to no long term debt, then the company has some kind of strong competitive advantage.
Warren Buffett's historic purchases indicate that on any given year, the company should have sufficient yearly net earnings to pay all long term within 3 or 4 year earnings period. (e.g. Coke + Moody's = 1yr)
Companies with enough earning power to pay long term debt in less than 3 or 4 years is a good candidate in our search for long term competitive advantage.
BUT, these companies are targets for leveraged buy outs, which saddles the business with long term debt.
If all else indicates the company has a moat, but it has ton of debt, a leveraged buyout may have created the debt. In these cases the company's bonds offer the better bet, in that the companys earnings power is focused on paying off the debt and not growth.
Important: little or no long term debt often means a Good Long Term Bet
Main Street Capital Long-Term Debt & Capital Lease Obligation Related Terms
Thank you for viewing the detailed overview of Main Street Capital's Long-Term Debt & Capital Lease Obligation provided by GuruFocus.com. Please click on the following links to see related term pages.
Main Street Capital (Main Street Capital) Business Description
Main Street Capital Corp is an investment firm engaged in providing customized debt and equity financing to lower middle market companies and debt capital to middle market companies. The investment portfolio of the company is typically made to support management buyouts, recapitalizations, growth financings, refinancings, and acquisitions of companies that operate in diverse industry sectors. The group invests in secured debt investments, equity investments, warrants, and other securities of the lower middle market and middle market companies based in the US. Business functioned through the U.S. region and it derives the majority of its income from the source of fees, commission, and interest.
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