Credit metrics and trailing periods

Methods and settings

Twelve calendar months, not one annualized quarter

Ratios combine the selected closing debt/cash stocks with flows over the preceding twelve calendar months. Annual, Quarterly, Monthly and Weekly views observe the same underlying financial series at different dates. They do not multiply a quarter’s EBITDA by four. At a partial trailing-window boundary, allocation follows the existing segment’s day exposure. Inspector shows the trailing start and test date so the observation can be reconciled.

Gross debt, net debt and negative net cash

Gross Debt includes closing debt and the relevant revolving funding balance. Net Debt subtracts cash and is allowed to become negative. Leverage requires positive TTM EBITDA; zero or negative EBITDA produces N/M rather than a misleading signed leverage ratio. Cash and linked Minimum Cash remain money values, not annualized flows. The same net-debt convention is used when calculating a net-leverage debt ceiling.

Read the implemented debt-service ratio

Cash flow / Debt service adds expense interest back once to FCF, which is after tax and capex, and divides by expense interest plus principal repaid. Principal includes scheduled and voluntary repayments; a cash sweep can therefore affect the denominator. For example, FCF 60, expense interest 10 and principal repayments 25 produce 70 ÷ 35 = 2.0×. This is the Model cash-flow definition, not a lender-specific CFADS calculation.

Interpret N/M precisely

A full trailing twelve months is required. Leverage is unavailable with nonpositive EBITDA; EBITDA/Interest and EBIT/Interest also require positive earnings and positive expense interest. Interest income is not netted into the expense denominator. Debt-service coverage needs positive total debt service. A ratio can be unavailable while closing debt or cash remains meaningful. Do not replace an unavailable ratio with zero to make a covenant appear compliant.

Adjusted values do not alter commitments

Financial basis controls the financial series used for metrics. When Adjusted is selected without configured adjustments, the operator explicitly uses Reported-equivalent values. Reported Financing still owns commitments, Required Funding and linked Minimum Cash. Use Adjustments to understand the financial changes, and capacity constraints to see which metrics have an implemented ceiling formula.