A breach and a failing business
look identical on a summary page.
A covenant test produces one number, and that number cannot tell a credit committee whether it is looking at a solvency problem or a working-capital problem wearing a solvency costume. This is how you show them the difference before they decide which one you are.
One ratio decides everything
A single figure below a single threshold moves you into a workout queue, whatever the underlying business is doing.
Nobody argues the denominator
Every file argues about earnings. Fixed charges are treated as fixed — and cash trapped in receivables is being financed at your revolver rate.
Your plan reads as optimism
A recovery plan with no arithmetic attached is indistinguishable from hope, and it will be read as hope.
Curing the covenant, both ways
The coverage ratio with earnings alone, and again once trapped working capital stops being borrowed — the lever almost no file pulls. From Kestrel Fabrication Ltd..
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Send us a live file and we will tell you within a day.
If there is an edge worth communicating in your numbers, we will say what it is and how we would make it. If there is not, we will say that instead and charge you nothing.
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