# Goldman Sachs BDC Inc. (GSBD) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/GSBD/thesis · /stocks/GSBD/memo

## Financial Snapshot

---
source: coverage-next-full
ticker: GSBD
step: 04
title: Financial Snapshot & Accounting Quality
created: 2026-05-29
---

### Step 04 — Financial Snapshot & Accounting Quality: Goldman Sachs BDC (GSBD)

#### 1. Three-Year Financial Snapshot

##### Annual Summary (BDC-Adapted Metrics)

| Metric | FY2025 | FY2024 | FY2023 | FY2022 | Notes |
|--------|--------|--------|--------|--------|-------|
| **NII per Share** | ~$2.19 (sum of qtrs) | ~$2.20 (sum) | ~$2.28 (sum) | ~$1.87 | Core earnings |
| **NAV per Share** | $12.31 | $13.71 | $14.79 | $14.69 | Declining trend |
| **Dividends per Share (actual)** | $1.28 | $1.80 | $1.80 | $1.80 | Q4'24 cut to $0.32/qtr |
| **Dividend Coverage (NII÷Div)** | ~1.71x | ~1.22x | ~1.27x | ~1.04x | FY coverage ratios |
| **Total Net Assets** | $1,423M | $1,573M | $1,602M | $1,502M | |
| **Total Debt** | $1,878M | $1,929M | $1,827M | $2,013M | |
| **Net Debt/Equity** | 1.32x | 1.23x | 1.14x | 1.34x | |
| **ROE (NII/avg equity)** | 12.1% | 15.9% | 15.9% | ~12.5% | |
| **Non-Accrual % (FV)** | ~1.9% | ~1.5% est. | ~1.0% est. | — | |
| **Portfolio FV** | $3,262M | $3,522M | $3,419M | $3,424M | |
| **P/NAV at Dec 31** | 0.73x | 0.90x | 1.00x | 0.94x | |

**Notes on FY2025 dividend:** Total declared in 2025 = $0.32×4 + $0.16 special + $0.03 supp (Q4) + $0.04 supp (Q3) + $0.05 supp (Q1) = $1.28 base + $0.28 supplemental/special. Reported dividends per StockAnalysis = $1.28, suggesting only base counted.

##### ROTCE (Return on Tangible Common Equity, NII basis)

| Year | NII (approx.) | Avg. NAV | ROTCE |
|------|--------------|----------|-------|
| FY2025 | ~$254M | ~$1,498M | 17.0% |
| FY2024 | ~$252M est. | ~$1,588M | 15.9% |
| FY2023 | ~$247M est. | ~$1,552M | 15.9% |

*ROTCE is strong because GSBD's high-yield portfolio (~10%–11%) generates attractive spreads, but NAV erosion means shareholders are not fully capturing this return.*

#### 2. Accounting Quality Assessment

##### Fair Value Methodology

As a BDC registered under the 1940 Act, GSBD values its investments at **fair value** per ASC 820, in accordance with the Board of Directors-approved valuation procedures [S1]:

- **Level 1 (Public market prices):** Minimal — GSBD primarily holds private loans
- **Level 2 (Observable inputs):** Some loans with observable comparable transactions
- **Level 3 (Unobservable inputs):** **Majority of portfolio** — fair valued using discounted cash flow models, market yield analysis, and comparable loan transactions

**Key Accounting Risks:**
1. **Subjectivity in Level 3 valuations:** GSAM's valuation committee determines fair value with oversight from an independent third-party valuation firm. However, GSAM (as investment adviser) has an economic interest in valuations since incentive fees are based partly on realized gains. This creates a structural tension.
2. **PIK (Payment-in-Kind) income:** Some loans accrue PIK interest (non-cash), which inflates NII without cash collection. GSBD has some PIK exposure, though the preponderance of first-lien cash-pay loans limits this risk.
3. **Dividend coverage gap:** The FY2025 distributions significantly exceeded GAAP net income ($1.28 div vs. $1.03 EPS), funded partly by return of capital — this is a yellow flag for NAV sustainability.
4. **Weighted average yield at FV vs. amortized cost:** Q4 2024 showed 14.1% FV yield vs. 11.2% amortized cost yield — a ~290 bps gap indicating ~20%+ average portfolio depreciation. When portfolio trades far below par, it flags potential future realized losses.

##### Earnings Quality Score: B-

*Rationale: Core NII is high quality (cash interest from diversified floating-rate loans). However, fair value methodology reliance, external incentive structure, persistent NAV erosion, and Q1 2026 dividend coverage shortfall weigh on quality.*

#### 3. Adversarial Research Sweep

##### Short Reports / Activist Activity
**Finding: No material short reports identified** [S5]
- No public short-seller research campaigns identified against GSBD
- Short interest is moderate (~3.8% of float as of Feb 2026) — elevated vs. BDC peers but not indicative of aggressive short thesis
- Short interest increased 64.5% in the two weeks ending Feb 13, 2026, suggesting growing bearish positioning ahead of Q4 2025 results

##### Legal / Regulatory Actions
**Finding: No material litigation disclosed** [S1]
- Standard investment adviser regulatory oversight (SEC, FINRA)
- No material pending litigation identified in 2024 10-K
- The 1940 Act regulatory framework provides investor protection oversight

##### Governance Concerns

**External Manager Conflict (Primary Risk):**
- GSAM earns fees based on gross assets (management fee) and NII (incentive fee) — incentivizes leverage and income without penalty for NAV erosion
- No "clawback" provision on incentive fees if future losses occur
- GSAM simultaneously manages GSCR (Goldman Sachs Private Credit Corp, a non-traded BDC) and other Goldman Sachs credit vehicles — allocation of deals between funds is a stated conflict
- Vivek Bantwal's 22,000-share purchase at $11.36 in September 2025 is a positive signal but represents a small dollar amount (~$250K) relative to GSAM's fee income ($62.76M in FY2025)

**Alex Chi Resignation:** Co-CEO Alex Chi resigned in 2025 — management instability is a moderate concern. Vivek Bantwal, as global co-head of GSAM Private Credit, is a credible successor.

##### Dividend Cut History
- Q4 2024: Dividend cut from $0.45/quarter to $0.32/quarter — a 29% reduction
- This followed multiple quarters of over-earning vs. the $0.45 dividend (coverage >1.0x), suggesting the cut was proactive/defensive rather than forced
- However, Q1 2026's $0.22 NII vs. $0.32 dividend base signals further cuts may be necessary if rate environment persists

#### 4. Key Risks to Financial Model

| Risk | Description | Severity |
|------|-------------|---------|
| Rate sensitivity | Each 100 bps rate cut → ~$0.10–$0.13/share NII reduction | HIGH |
| Non-accrual creep | Current 1.9% FV; if reaches 3%+ → meaningful income loss | MEDIUM-HIGH |
| NAV erosion | 23% decline since 2021; continued erosion → market discount widens | HIGH |
| Fee drag | $62.76M fees on $1.4B NAV = 4.5% effective expense ratio | MEDIUM |
| Dividend sustainability | Q1 2026 coverage 0.69x — may need another cut | HIGH |
| External manager | GSAM incentivizes leverage, not necessarily shareholder returns | MEDIUM |

#### 5. Source Index

| Ref | Source |
|-----|--------|
| [S1] | Goldman Sachs BDC 10-K FY2024 (sec.gov, EDGAR CIK 0001572694) |
| [S2] | StockAnalysis.com GSBD financials (2026-05-29) |
| [S3] | BusinessWire: GSBD quarterly earnings press releases 2024–2026 |
| [S4] | Accredited Insight: GSBD fee structure analysis |
| [S5] | Tavily search: GSBD short interest, legal actions, governance |

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/GSBD/fundamental

## Navigation

- Overview: /stocks/GSBD
- Financials (this page): /stocks/GSBD/financials
- Thesis: /stocks/GSBD/thesis
- Investment Memo: /stocks/GSBD/memo
- Coverage universe: /stocks