This method provides an accurate measurement. It is more helpful when an investor uses lower interest rates rather than the higher ones. It is more used for situations which involve compound interest. The one which involves a simple interest rate does not work well with this method.
S&P Global flags potentially hidden AI debt at hyperscalers as AI spending surges
S&P Global warned that hyperscalers could be carrying more AI related debt than currently visible through financing structures linked to data centres and smaller AI