eyko Ideas
A debt book that was right last year may be quietly expensive this one. A Capital Structure Optimization Playbook reads the debt mix, floating and fixed exposure, leverage against covenant, and the rate environment, then shows whether to reshape the structure and how, before the next interest bill lands.
The Challenge
A debt mix set when rates were low looks fine until the floating share starts compounding. The interest expense creeps up quarter on quarter, and the spreadsheet shows the balance, not the cost of the shape.
When leverage sits close to the covenant, adding gross debt is not an option. The instinct to refinance into more capacity runs straight into the test, so the real move is reshaping the existing mix, not expanding it.
The rate curve, leverage, and the relative cost of fixed versus floating move continuously. A capital structure review run once a year is stale long before the next test, and the window to swap on favorable terms has usually closed.
How eyko Solves It
A Capital Structure Optimization Playbook connects to your debt schedule, rate data, and covenant terms, measures floating and fixed exposure against the current curve on a regular beat, and shows whether to reshape the mix with the cost, flexibility, and covenant headroom of each option ranked.
The book carries 48M of debt: 34M of floating-rate revolver and term debt, and 14M fixed. With rates elevated, the floating share is driving interest expense up roughly 1.1M annualized versus a year ago.
| Metric | Current | Benchmark | Status |
|---|---|---|---|
| Primary indicator | Flagged | Target | Action needed |
| Secondary indicator | Monitoring | Within range | On track |
| Trend direction | Declining | Stable | Review required |
Capital structure optimization assesses whether the current debt mix is still the right one. The Playbook reads the debt schedule, splits floating from fixed exposure, and measures interest cost against the rate environment, then shows how much the shape of the book is adding to expense, so treasury sees the cost of the structure rather than just its size.
This is decision intelligence in practice: the what, the why, and the what next from your live data.
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View IdeaFAQ
Everything you need to know about Capital Structure Optimization.
Capital structure optimization assesses whether the current debt mix is the right one. eyko reads the debt schedule, splits floating from fixed exposure, and measures interest cost against the rate environment and the covenant, then shows whether to reshape the structure and how, so treasury can lower the cost of the book before the next interest bill or covenant test.
A spreadsheet model shows the balances but not how much the shape of the book is adding to cost or how close leverage sits to the covenant. The Playbook refreshes on a regular beat, attributes excess expense to the floating share, checks the covenant headroom, and recommends a reshaping move with its cost modeled against the saving.
It reads from your ERP general ledger, debt schedule, and covenant terms, alongside any data platform you already run. There is no separate data project to start, and it works with systems such as SAP, Oracle, NetSuite, and Workday.
Once connected, the Playbook returns the debt by type, the cost of the floating share, and the covenant headroom on its next beat, in minutes rather than the days a manual model usually takes, then refreshes as rates and leverage change so the picture stays current.
Join the enterprises replacing weeks of manual analysis with a single prompt. See what eyko Playbooks can do with your data.
