Free corporate DSCR calculator from Fynvorax. Model DSCR, fixed charge coverage (FCCR), and debt service capacity for business lending analysis.
Corporate DSCR and covenant headroom: EBITDA ÷ debt service. Falling below 1.0x signals distress; lenders may block dividends or accelerate debt.
A financial covenant is a banking clause requiring a borrower company to maintain specific ratios (such as a DSCR above 1.25x, or debt-to-EBITDA below 4.0x). If the business drops below this ratio limit, a covenant breach occurs. Upfront penalties, mandatory margin callbacks, or sudden loan acceleration and foreclosure can be activated immediately.
Capital Expenditures (CapEx) represent cash outflows that a business must invest routinely in property, plants, and equipment to preserve its physical capacity to operate. Since this cash must leave the bank to maintain EBITDA generation, credit analysts treat it as a mandatory fixed expense that undercuts available debt service cash flow.
Missing DSCR, leverage, or liquidity tests in loan docs lets lenders demand remedies: higher rate, cash sweep, or acceleration.
Often maintain 1.25–1.50x+ through the cycle; cyclical businesses need more cushion.