The Debt Capacity Analyzer

Analyse how much debt this business can safely take on.

The business: [DESCRIBE — CASH FLOW STABILITY, MARGINS, CYCLICALITY]
Financials: [EBITDA, EXISTING DEBT, INTEREST, CASH FLOW]
The purpose of new debt: [DESCRIBE]

Provide:
1. The coverage ratios lenders and I should care about (interest cover,
   debt/EBITDA) and where mine sit
2. How much additional debt the cash flows can service through a downturn,
   not just today
3. The stress test: what happens to coverage if revenue drops [X%]
4. The right cushion given this business's volatility
5. A recommended borrowing capacity and the covenants to expect

Anchor it to the business's ability to service debt in bad times, not
good — that's what determines safe capacity.