Debt Stack Jenga—Spot the Wobble Before It Falls

Leverage is fine; over-leverage sinks ships.

Red-Flag Ratios

1. Total Debt / EBITDA > 4×
2. Short-Term Debt > 60 % of total
3. Fixed-Charge Cover < 1.2×

Quick Stress Drill

• Drop revenue 20 %.
• Add 200 bps to interest rates.
• If any ratio breaches covenants, talk to lenders before they call you.

Keywords: leverage risk UAE, covenant breach, debt stacking, capital structure, SME warning signs
Hashtags: #KlubAI #DebtStack #LeverageRisk #FinancialHealth #Covenants

This article is marketing material for educational purposes only. Figures are illustrative, not financial advice.