Debt Service Coverage Below Reference
Leverage / base / 3 to 6 months
What it detects
The income-based debt service coverage ratio is below the [redacted]x reference coverage line. This comparison does not read the loan agreement or establish a covenant breach. It requires a full annual P&L.
Why it matters
Coverage below the reference line leaves less room for changes in earnings or debt payments. Check the actual loan agreement for its numerator, required ratio, and testing dates, and discuss concerns with the lender. The reference ratio cannot establish breach or enforcement rights.
Severity levels
- MEDIUM
- HIGH
Thresholds
- DSCR_COVENANT
Exact thresholds, formulas, and severity bands are omitted from this public view. The full methodology, with every figure, is available in the authenticated app.
When this signal does not apply
This signal needs the scheduled principal on long-term debt and a positive operating income to read a coverage ratio at all. When the books carry no current-portion-of-debt line, or show an operating loss, the read is reported as not applicable rather than approximated from interest alone.
How it connects
Check your actual loan agreement for its coverage definition, required ratio, and testing dates. This reference comparison does not establish a covenant breach.
Sources
SEE IT ON REAL NUMBERS
The exact thresholds, the formula, and your own figures are in the authenticated app. See it against a real, simulated dataset for Integra Executive Services, our public demo company, or connect your own QuickBooks Online account.