Stock Balance Sheet

Balance sheet stress test for a stock. Use when the user asks about debt, leverage, liquidity, financial health, or whether a company can survive a downturn.

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File contents

Stress test the balance sheet:

  1. NET DEBT position and net debt / EBITDA ratio
  2. MATURITY WALL — when does debt mature? Any refinancing risk in next 24 months?
  3. LIQUIDITY — cash + revolver capacity vs 12-month cash burn
  4. COVENANTS — any maintenance covenants that could be tripped if EBITDA drops 20%?
  5. OFF-BALANCE SHEET — operating leases, pension obligations, contingent liabilities
  6. SCENARIO — if revenue drops 25% next year, does the company survive? Walk through the math.

Rate overall balance sheet health: Fortress / Solid / Adequate / Stressed / Danger

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