Sort the Credit Metrics by What They See

Sort each metric by what it primarily sees in the capital-structure decision. Leverage: claim size Coverage: payment capacity Liquidity: near-term resources Market access: refinancing ability Net debt divided by EBITDA after lease adjustments Debt to total capitalization using market-value equity where available EBIT or EBITDA divided by cash interest expense Fixed-charge coverage including leases, interest, and required payments Debt service coverage comparing cash flow to interest plus principal payments Current assets divided by current liabilities Cash on hand divided by expected monthly net cash burn Debt maturities clustered inside the next 24 months Bond yield spread widening versus peers and…

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