Recall the core leverage dashboard before proposing additional debt.
Leverage What does net debt / EBITDA primarily tell you? Think claim size, not service ability. It compares debt burden to an earnings proxy, showing how large the debt claim is relative to operating scale. It does not prove the company can cover interest, repay principal, or refinance maturities. Compare Leverage ratio versus coverage ratio: what is the difference? Leverage sizes the claim; coverage tests payment capacity. A company can look acceptable on one and weak on the other, especially when rates reset or maturities cluster. Objection Debt is cheaper than equity, so more debt should lower our cost of…
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