Quick Reference: Debt Metric Cards
Recall what core debt metrics answer and where each can mislead.
Leverage What question does net debt-to-EBITDA answer? How large the debt burden is relative to recurring earnings capacity. It can miss cash timing, maturity concentration, and covenant definition details. Coverage What question does interest coverage answer? Whether operating earnings comfortably cover recurring interest expense. It does not include scheduled principal, so it is not a full debt-service test. Compare DSCR versus interest coverage: which one includes principal? DSCR is the broader debt-service lens when principal payments matter. Objection "Leverage is fine, so liquidity must be fine too." A manager is confusing balance-sheet burden with cash timing. Your line Leverage tells…
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