Velkapääomaa

Velkapääomaa (debt capital) refers to funds borrowed by a company to finance operations and investments. It comprises instruments such as bank loans, bonds, notes, and other debt instruments. Unlike equity capital, debt must be repaid and carries mandatory interest payments, creating fixed obligations that exist regardless of profitability. Debt capital is a central element of corporate capital structure and affects leverage, cost of capital, and risk profile.

Debt can be short-term or long-term, secured or unsecured, and senior or subordinated. Common forms include bank loans, corporate bonds, and line-of-credit facilities. Some instruments carry fixed interest rates while others are floating; covenants can impose operating or financial limits. Hybrid forms, such as mezzanine debt, blend debt and equity characteristics.

Debt offers potential tax advantages in many jurisdictions because interest payments are deductible, reducing after-tax cost. It can amplify returns on equity when the company earns a return above its cost of debt. However, higher leverage increases insolvency risk, especially in downturns, and introduces interest-rate risk, refinancing risk, and covenants that constrain management.

On the balance sheet, velkapääomaa appears as liabilities; interest expense is reported in the income statement. Key indicators include debt-to-equity ratio, total debt ratio, interest coverage (EBIT/interest), and debt maturity profile, which help managers and investors assess reliance on debt and the ability to service it.