Leverage / base / 3 to 6 months
The business does not generate enough net operating income to cover its annual debt service (scheduled principal plus interest) with the cushion a commercial lender requires. Debt service coverage is the ratio lenders write into loan covenants, and a reading below the covenant line is a technical breach: the lender can call the loan, freeze the facility, or reprice it, regardless of whether payments are current.
Exact thresholds, formulas, and severity bands are omitted from this public view. The full methodology, with every figure, is available in the authenticated app.
This signal needs the scheduled principal on long-term debt and a positive operating income to read a coverage ratio at all. When the books carry no current-portion-of-debt line, or show an operating loss, the read is reported as not applicable rather than approximated from interest alone.
A DSCR below the [redacted]x line is a technical covenant breach: a lender can call the loan, freeze the facility, or reprice it. [redacted]
The exact thresholds, the formula, and your own figures are in the authenticated app. See it against a real, simulated dataset for Integra Executive Services, our public demo company, or connect your own QuickBooks Online account.