A breach may accelerate the loan and may require the debt to be classified as current under TMS 1. The agreement should state clearly which definitions and financial statements are used to calculate the ratios.
Related terms
Net debtFinancial debt and similar liabilities less cash and cash equivalents.EBITDAEarnings before interest, tax, depreciation and amortisation; used as an indicator of the cash-like profitability generated by a company's core operations.RefinancingRepaying existing debt with new financing, usually on more favourable terms.BetaA coefficient measuring the sensitivity of a share's return to changes in the market return, that is, its systematic risk.Break-even pointThe sales volume or amount at which total revenue equals total cost and the business makes neither profit nor loss.Capital asset pricing model (CAPM)A model that calculates the cost of equity from the risk-free rate, beta and the market risk premium.
Last updated: October 31, 2026 · This definition is for general information only.