CovenantScope · Debt, Covenant & Credit Analysis Tools
Know your covenant headroom. See what breaks first.
Analyse leverage, coverage, debt capacity and covenant headroom. Stress-test EBITDA and identify the binding covenant using your own financial figures and covenant thresholds.
Covenant analysis engine
Example data is a fictional company for illustration only. All inputs are modelling assumptions, not legal determinations. Covenant definitions vary between credit agreements — always refer to your finance documents.
Display formatting only. No currency conversion. Enter all figures in the same currency.
Section A — Financial position
Enter your figures. All fields are optional except where a ratio needs them.
Used for DSCR / indicative CFADS only.
Some covenant definitions prevent net debt falling below zero. Use only if it reflects the definition you are modelling.
Covenant EBITDA
Use Reported EBITDA as-is, or build an adjusted / covenant EBITDA bridge.
Covenant thresholds
Enable only the tests you are modelling. Thresholds are your assumptions — not market standards.
Tightest covenant
The active covenant that reaches its entered threshold first, based on EBITDA decline.
Enter your financial figures and enable covenant tests to see the binding covenant.
Calculation transparency
Full precision is used internally; values are rounded only for display.
Covenant stress test
Recalculates covenant metrics under EBITDA stress. Status reflects only the mathematical assumptions entered.
Secondary to EBITDA stress. Only the debt you mark is affected.
| Scenario | EBITDA |
|---|---|
| Base | £0 |
| -5% | £0 |
| -10% | £0 |
| -15% | £0 |
| -20% | £0 |
| -25% | £0 |
| -30% | £0 |
Enable at least one covenant threshold to populate the stress table.
Understanding covenant headroom
Financial covenants are used to test whether a borrower remains within agreed financial parameters. Common measures include net leverage, gross leverage, interest coverage, debt service coverage ratio ( DSCR) and fixed charge coverage ratio ( FCCR). Covenant headroom shows the amount of capacity remaining before one of these thresholds is reached.
CovenantScope brings these measures together so you can analyse the relationship between debt, EBITDA, cash, interest costs and covenant thresholds using your own assumptions. The analysis can help identify the tightest or binding covenant and show how much EBITDA could decline before an entered threshold is reached.
How covenant stress testing helps
A business may be comfortably within its covenant limits today but have considerably less headroom if EBITDA falls, debt increases or interest costs rise. Stress testing allows different scenarios to be modelled before they occur, making the underlying sensitivity easier to understand.
CovenantScope is designed for financial modelling and scenario analysis rather than determining covenant compliance. Actual covenant calculations depend on the definitions, adjustments, exclusions and testing requirements contained in the relevant credit or finance agreement.