Debt Stack Jenga—Spot the Wobble Before It Falls

techadmin

Jul 16, 2025 — 1 min read

Leverage is fine; over-leverage sinks ships.

Red-Flag Ratios

Total Debt / EBITDA > 4×
Short-Term Debt > 60 % of total
Fixed-Charge Cover < 1.2×

Quick Stress Drill

Drop revenue 20 %.
Add 200 bps to interest rates.
If any ratio breaches covenants, talk to lenders before they call you.

Keywords: leverage risk UAE, covenant breach, debt stacking, capital structure, SME warning signs
Hashtags: #KlubAI #DebtStack #LeverageRisk #FinancialHealth #Covenants

This article is marketing material for educational purposes only. Figures are illustrative, not financial advice.

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Build a 90-Day Emergency Liquidity Kit—Before You Actually Need It

Repayment Shapes 101—Choose a Curve Your Cash Can Afford

Exit-Ready Hygiene: Clean Up Debt Before Investors Start Digging

Refinance, Revolve or Repay—Which Button Saves You the Most Dirhams?