For Valutico's calculations, we would look at the previous year's average and the current year's debt - then multiply that by the interest rate.
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(Cost of Debt pre-tax, calculated by taking the Credit Spread + Risk-free rate.)
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For example, to calculate the Interest Expense of a company with 1500mn in Debt in 2021, and 1500m in debt in 2022, with an interest rate of 4.4% - the calculation would be:
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( (1500mn + 1500mn) / 2 ) * 0.05 = 1500mn x. 0.05 ~ 65.7 Interest Expense.
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(All he values are rounded off for this example, please refer to the image below for the detailed example)
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