Synthetic Covenant Works — debt capacity
Leverage and interest-cover constraints determine debt capacity alongside a quarterly leverage covenant.
EURk · Base · Model horizon: 2026-01-01 – 2031-12-31
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At a glance
Additional debt capacity
16,897.27 EURk2031 · BaseRequired paydown
0 EURk2031 · BaseMaximum gross debt
16,897.27 EURk2031 · BaseDebt Capacity & Covenants · Base
| Metric | 2026 Actual | 2027 | 2028 | 2029 | 2030 | 2031 |
|---|---|---|---|---|---|---|
| Gross debt (EURk) | 3,000 | 2,850 | 2,700 | 0 | 0 | 0 |
| Net debt (EURk) | -22.71 | -1,029.63 | -2,131.93 | -3,487.75 | -4,990.79 | -6,659.19 |
| Gross Leverage (×) | 1.09 | 0.96 | 0.84 | 0 | 0 | 0 |
| Net Leverage (×) | -0.00823 | -0.35 | -0.66 | -1 | -1.33 | -1.64 |
| Interest Coverage (×) | 18.4 | 16.98 | 19.33 | Unavailable / not applicable | Unavailable / not applicable | Unavailable / not applicable |
| Ebit Coverage (×) | 14.8 | 13.9 | 16.08 | Unavailable / not applicable | Unavailable / not applicable | Unavailable / not applicable |
| Debt Service Coverage (×) | 8.82 | 4.68 | 5.2 | 0.67 | Unavailable / not applicable | Unavailable / not applicable |
| Cash & Cash Equivalents (EURk) | 3,022.71 | 3,879.63 | 4,831.93 | 3,487.75 | 4,990.79 | 6,659.19 |
| Minimum Cash (EURk) | 3,022.71 | 3,879.63 | 4,831.93 | 3,487.75 | 4,990.79 | 6,659.19 |
| Maximum gross debt (EURk) | 11,302.71 | 12,822.03 | 14,031.36 | 13,918.17 | 15,645.62 | 16,897.27 |
| Maximum net debt (EURk) | 8,280 | 8,942.4 | 9,199.42 | 10,430.42 | 10,654.83 | 10,238.08 |
| Additional debt capacity (EURk) | 8,302.71 | 9,972.03 | 11,331.36 | 13,918.17 | 15,645.62 | 16,897.27 |
| Required paydown (EURk) | 0 | 0 | 0 | 0 | 0 | 0 |
| Metric | Value |
|---|---|
| Minimum covenant headroom · Covenant | 3.01 |
| Metric | 2026-Q4 | 2027-Q1 | 2027-Q2 | 2027-Q3 | 2027-Q4 | 2028-Q1 | 2028-Q2 | 2028-Q3 | 2028-Q4 | 2029-Q1 | 2029-Q2 | 2029-Q3 | 2029-Q4 | 2030-Q1 | 2030-Q2 | 2030-Q3 | 2030-Q4 | 2031-Q1 | 2031-Q2 | 2031-Q3 | 2031-Q4 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Liquidity headroom · Covenant | 3.01 | 3.07 | 3.14 | 3.23 | 3.35 | 3.39 | 3.46 | 3.55 | 3.66 | 3.71 | 3.79 | 3.89 | 4 | 4.05 | 4.12 | 4.22 | 4.33 | 4.37 | 4.44 | 4.53 | 4.64 |
Financing & Debt Schedule · Base
| Metric | 2027 | 2028 | 2029 | 2030 | 2031 |
|---|---|---|---|---|---|
| Gross debt | 2,850 | 2,700 | 0 | 0 | 0 |
| Net debt | -1,029.63 | -2,131.93 | -3,487.75 | -4,990.79 | -6,659.19 |
| Cash & Cash Equivalents | 3,879.63 | 4,831.93 | 3,487.75 | 4,990.79 | 6,659.19 |
| Metric | 2027 | 2028 | 2029 | 2030 | 2031 |
|---|---|---|---|---|---|
| Undrawn committed facilities | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 |
| Available liquidity | 4,879.63 | 5,831.93 | 4,487.75 | 5,990.79 | 7,659.19 |
| Liquidity headroom | 4,379.63 | 5,331.93 | 3,987.75 | 5,490.79 | 7,159.19 |
| Required Funding | 0 | 0 | 0 | 0 | 0 |
| Funding need | 0 | 0 | 0 | 0 | 0 |
Interest / repayment
| Metric | 2027 | 2028 | 2029 | 2030 | 2031 |
|---|---|---|---|---|---|
| Interest expense | 175.58 | 166.58 | 0 | 0 | 0 |
| Draws | 0 | 0 | 0 | 0 | 0 |
| Repayments | 150 | 150 | 2,700 | 0 | 0 |
Debt schedule
| Metric | 2027 | 2028 | 2029 | 2030 | 2031 |
|---|---|---|---|---|---|
| Closing balance · Senior term loan | 2,850 | 2,700 | 0 | 0 | 0 |
| Interest expense · Senior term loan | 175.58 | 166.58 | 0 | 0 | 0 |
| Draws · Senior term loan | 0 | 0 | 0 | 0 | 0 |
| Repayments · Senior term loan | 150 | 150 | 2,700 | 0 | 0 |
| Metric | 2027 | 2028 | 2029 | 2030 | 2031 |
|---|---|---|---|---|---|
| Closing balance · Loan 1 | 0 | 0 | 0 | 0 | 0 |
| Interest expense · Loan 1 | 0 | 0 | 0 | 0 | 0 |
| Draws · Loan 1 | 0 | 0 | 0 | 0 | 0 |
| Repayments · Loan 1 | 0 | 0 | 0 | 0 | 0 |
Annual · Base
| Metric | 2026 Actual | 2027 | 2028 | 2029 | 2030 | 2031 |
|---|---|---|---|---|---|---|
| Revenue (EURk) | 12,000 | 12,960 | 13,996.8 | 15,116.54 | 16,325.87 | 17,631.94 |
| Cost of goods sold (EURk) | -6,960 | -7,516.8 | -8,118.14 | -8,767.6 | -9,469 | -10,226.52 |
| Gross profit (EURk) | 5,040 | 5,443.2 | 5,878.66 | 6,348.95 | 6,856.86 | 7,405.41 |
| Other operating income (EURk) | 0 | 0 | 0 | 0 | 0 | 0 |
| SG&A (EURk) | -2,280 | -2,462.4 | -2,659.39 | -2,872.14 | -3,101.91 | -3,350.07 |
| Depreciation & amortization (EURk) | -540 | -540 | -540 | -540 | -540 | -540 |
| EBITDA (EURk) | 2,760 | 2,980.8 | 3,219.26 | 3,476.81 | 3,754.95 | 4,055.35 |
| EBIT (EURk) | 2,220 | 2,440.8 | 2,679.26 | 2,936.81 | 3,214.95 | 3,515.35 |
| Interest expense (EURk) | -150 | -175.58 | -166.58 | 0 | 0 | 0 |
| Earnings before tax (EURk) | 2,070 | 2,265.22 | 2,512.68 | 2,936.81 | 3,214.95 | 3,515.35 |
| Taxes (EURk) | -517.5 | -566.3 | -628.17 | -734.2 | -803.74 | -878.84 |
| Net income (EURk) | 1,552.5 | 1,698.91 | 1,884.51 | 2,202.6 | 2,411.21 | 2,636.51 |
| Revenue growth (%) | 8 | 8 | 8 | 8 | 8 | 8 |
| Gross margin (%) | 42 | 42 | 42 | 42 | 42 | 42 |
| Metric | 2026 Actual | 2027 | 2028 | 2029 | 2030 | 2031 |
|---|---|---|---|---|---|---|
| Change in receivables | -116.89 | -94.18 | -138.73 | -139.54 | -156.04 | -168.53 |
| Change in inventory | -87.57 | -70.55 | -103.93 | -104.54 | -116.9 | -126.25 |
| Change in payables | 60.74 | 48.93 | 72.08 | 72.5 | 81.08 | 87.56 |
| Change in other working capital | 4.44 | 3.58 | 5.27 | 5.31 | 5.93 | 6.41 |
| D&A add-back | 540 | 540 | 540 | 540 | 540 | 540 |
| Other non-cash items | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash flow from operations | 1,953.21 | 2,126.7 | 2,259.21 | 2,576.34 | 2,765.28 | 2,975.7 |
| Capital expenditure | -780 | -780 | -780 | -780 | -780 | -780 |
| Cash flow from investing | -780 | -780 | -780 | -780 | -780 | -780 |
| Debt issuance | 0 | 0 | 0 | 0 | 0 | 0 |
| Debt repayment | 0 | -150 | -150 | -2,700 | 0 | 0 |
| Revolver draw / (repayment) | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends paid | -310.5 | -339.78 | -376.9 | -440.52 | -482.24 | -527.3 |
| Cash flow from financing | -310.5 | -489.78 | -526.9 | -3,140.52 | -482.24 | -527.3 |
| Change in cash | 862.71 | 856.92 | 952.31 | -1,344.18 | 1,503.04 | 1,668.4 |
| Free cash flow | 1,173.21 | 1,346.7 | 1,479.21 | 1,796.34 | 1,985.28 | 2,195.7 |
| Metric | 2026 Actual | 2027 | 2028 | 2029 | 2030 | 2031 |
|---|---|---|---|---|---|---|
| Cash & Cash Equivalents | 3,022.71 | 3,879.63 | 4,831.93 | 3,487.75 | 4,990.79 | 6,659.19 |
| Accounts receivable | 1,578.08 | 1,672.26 | 1,810.99 | 1,950.52 | 2,106.56 | 2,275.09 |
| Inventory | 1,182.25 | 1,252.8 | 1,356.73 | 1,461.27 | 1,578.17 | 1,704.42 |
| Accounts payable | 819.95 | 868.88 | 940.96 | 1,013.46 | 1,094.54 | 1,182.1 |
| Other current assets | 180 | 190.74 | 206.57 | 222.48 | 240.28 | 259.5 |
| Other current liabilities | 240 | 254.32 | 275.42 | 296.64 | 320.37 | 346 |
| Long-term debt | 3,000 | 2,850 | 2,700 | 0 | 0 | 0 |
| Required revolving funding | 0 | 0 | 0 | 0 | 0 | 0 |
| Property, plant & equipment | 6,240 | 6,480 | 6,720 | 6,960 | 7,200 | 7,440 |
| Other non-current assets | 360 | 360 | 360 | 360 | 360 | 360 |
| Other non-current liabilities | 120 | 120 | 120 | 120 | 120 | 120 |
| Total current assets | 5,963.04 | 6,995.43 | 8,206.22 | 7,122.02 | 8,915.8 | 10,898.2 |
| Total assets | 12,563.04 | 13,835.43 | 15,286.22 | 14,442.02 | 16,475.8 | 18,698.2 |
| Book equity | 8,383.1 | 9,742.23 | 11,249.84 | 13,011.92 | 14,940.89 | 17,050.1 |
| Total liabilities & equity | 12,563.04 | 13,835.43 | 15,286.22 | 14,442.02 | 16,475.8 | 18,698.2 |
Modeling Rationale
Debt capacity is limited by the binding constraint, not by a single headline multiple.
Key assumptions
Maximum Net Debt / EBITDA 3.0x; minimum EBITDA / Interest 3.0x; incremental annual interest rate 8%. Contractual quarterly leverage ceiling 3.0x. Model definitions are not lender-specific legal definitions.
Notes
Entirely synthetic data for a fictional company. No real issuer or market data. Exercise: Lower operating margin and identify the binding constraint and covenant headroom.
Published inputs and structure
Input data uses full functional-currency amounts. Rates retain their native percentage convention. Result tables state their display units in the caption or beside each metric.
- Calendar
Calendar (4)
- Actual Years
- 1
- Calculation
- annual
- Fiscal Year End
fiscalYearEnd (2)
- Day
- 31
- Month
- 12
- Start Year
- 2026
- This line currently uses the existing Simple assumptions.
This line currently uses the existing Simple assumptions. (6)
- Calendar
calendar (2)
- Actual Years
- 1
- Start Year
- 2026
- Currency
- EUR
- Name
- Synthetic Covenant Works
- Opening debt
opening (13)
- Accounts payable
- 759208.52359209
- Accounts receivable
- 1461187.2146119
- Total assets
- 11242526.636225
- Cash & Cash Equivalents
- 2160000
- Long-term debt
- 3000000
- Equity Value
- 7141095.890411
- Inventory
- 1094672.7549467
- Other current assets
- 166666.66666667
- Other current liabilities
- 222222.22222222
- Other non-current assets
- 360000
- Other non-current liabilities
- 120000
- Property, plant & equipment
- 6000000
- Revenue
- 11111111.111111
- Type
- industrial
- Year view
years (6)
- 0
0 (13)
- Capital expenditure
- 780000
- Depreciation & amortization
- 540000
- Long-term debt
- 3000000
- Days inventory outstanding
- 62
- Days payable outstanding
- 43
- Days sales outstanding
- 48
- Gross margin
- 42
- Revenue growth
- 8
- Interest rate
- 5
- Dividend payout / net income
- 20
- Revenue
- 12000000
- SG&A / revenue
- 19
- Tax rate
- 25
- 1
1 (20)
- Ar Adjustment
- 0
- Capital expenditure
- 780000
- Depreciation & amortization
- 540000
- Long-term debt
- 3000000
- Days inventory outstanding
- 62
- Days payable outstanding
- 43
- Days sales outstanding
- 48
- Equipment Purchase
- 0
- Extra DA
- 0
- Extra Dividend
- 0
- Gross margin
- 42
- Revenue growth
- 8
- Interest rate
- 5
- Inventory Adjustment
- 0
- Dividend payout / net income
- 20
- Revenue
- —
- Scenario Borrowing
- 0
- Scenario Repayment
- 0
- SG&A / revenue
- 19
- Tax rate
- 25
- 2
2 (20)
- Ar Adjustment
- 0
- Capital expenditure
- 780000
- Depreciation & amortization
- 540000
- Long-term debt
- 3000000
- Days inventory outstanding
- 62
- Days payable outstanding
- 43
- Days sales outstanding
- 48
- Equipment Purchase
- 0
- Extra DA
- 0
- Extra Dividend
- 0
- Gross margin
- 42
- Revenue growth
- 8
- Interest rate
- 5
- Inventory Adjustment
- 0
- Dividend payout / net income
- 20
- Revenue
- —
- Scenario Borrowing
- 0
- Scenario Repayment
- 0
- SG&A / revenue
- 19
- Tax rate
- 25
- 3
3 (20)
- Ar Adjustment
- 0
- Capital expenditure
- 780000
- Depreciation & amortization
- 540000
- Long-term debt
- 3000000
- Days inventory outstanding
- 62
- Days payable outstanding
- 43
- Days sales outstanding
- 48
- Equipment Purchase
- 0
- Extra DA
- 0
- Extra Dividend
- 0
- Gross margin
- 42
- Revenue growth
- 8
- Interest rate
- 5
- Inventory Adjustment
- 0
- Dividend payout / net income
- 20
- Revenue
- —
- Scenario Borrowing
- 0
- Scenario Repayment
- 0
- SG&A / revenue
- 19
- Tax rate
- 25
- 4
4 (20)
- Ar Adjustment
- 0
- Capital expenditure
- 780000
- Depreciation & amortization
- 540000
- Long-term debt
- 3000000
- Days inventory outstanding
- 62
- Days payable outstanding
- 43
- Days sales outstanding
- 48
- Equipment Purchase
- 0
- Extra DA
- 0
- Extra Dividend
- 0
- Gross margin
- 42
- Revenue growth
- 8
- Interest rate
- 5
- Inventory Adjustment
- 0
- Dividend payout / net income
- 20
- Revenue
- —
- Scenario Borrowing
- 0
- Scenario Repayment
- 0
- SG&A / revenue
- 19
- Tax rate
- 25
- 5
5 (20)
- Ar Adjustment
- 0
- Capital expenditure
- 780000
- Depreciation & amortization
- 540000
- Long-term debt
- 3000000
- Days inventory outstanding
- 62
- Days payable outstanding
- 43
- Days sales outstanding
- 48
- Equipment Purchase
- 0
- Extra DA
- 0
- Extra Dividend
- 0
- Gross margin
- 42
- Revenue growth
- 8
- Interest rate
- 5
- Inventory Adjustment
- 0
- Dividend payout / net income
- 20
- Revenue
- —
- Scenario Borrowing
- 0
- Scenario Repayment
- 0
- SG&A / revenue
- 19
- Tax rate
- 25
- Objects
Objects (0)
- Driven by Advanced Model
Driven by Advanced Model (0)
- Financing
Financing (5)
- Auto Repay
- false
- Automatic
- true
- Facilities
facilities (2)
- Facility 1
facility-1 (10)
- Comment
- Commitment
- 3000000
- Id
- facility-1
- Loans
loans (1)
- Facility 1 loan 1
facility-1-loan-1 (8)
- Amortization
- 150000
- Comment
- Events
events (0)
- Id
- facility-1-loan-1
- Maturity date
- 2029-01-01
- Name
- Senior term loan
- Opening debt
- 3000000
- Interest rate (%)
- 6
- Maturity date
- 2029-01-01
- Name
- Senior term facility
- Priority
- 1
- Start date
- —
- Status
- committed
- Type
- term
- Seed rcf
seed-rcf (10)
- Comment
- Commitment
- 1000000
- Id
- seed-rcf
- Loans
loans (1)
- Seed rcf loan 1
seed-rcf-loan-1 (8)
- Amortization
- 0
- Comment
- Events
events (0)
- Id
- seed-rcf-loan-1
- Maturity date
- —
- Name
- Loan 1
- Opening debt
- 0
- Interest rate (%)
- 7
- Maturity date
- —
- Name
- Committed working capital line
- Priority
- 1
- Start date
- —
- Status
- committed
- Type
- revolver
- Minimum Cash
- 500000
- Version
- 1
- Credit Analysis
Credit Analysis (5)
- Basis
- reported
- Some requested targets exceed available balances. Depreciation is capped at opening depreciable assets; receivables cannot exceed opening receivables plus sales; inventory cannot fall by more than the goods expensed; payables cannot exceed opening payables plus purchases. Realized day ratios may differ from requested assumptions. No unmodeled refunds, disposals or supplier advances are assumed.
constraints (2)
- Coverage
coverage (6)
- Active
- true
- Id
- coverage
- Metric
- interestCoverage
- Name
- Debt capacity constraint
- Operator
- >=
- Threshold
- 3
- Net debt / EBITDA
leverage (6)
- Active
- true
- Id
- leverage
- Metric
- netLeverage
- Name
- Debt capacity constraint
- Operator
- <=
- Threshold
- 3
- Covenants
covenants (1)
- Net leverage
net-leverage (11)
- Active
- true
- Comment
- End date (exclusive)
- —
- Frequency
- quarterly
- Id
- net-leverage
- Metric
- netLeverage
- Name
- Covenant
- Operator
- <=
- Start date
- —
- Threshold
- 3
- Use For Capacity
- false
- Incremental Rate
- 8
- Version
- 1
Report model
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