Always recalculate covenants

Today’s piece of advice is simple: Always recalculate covenants.

If there’s some kind of loan/bank covenant, make sure to look at it before and after adjustments. Calculate whether they are out of bounds on the covenant before and then after any adjustments and use that in your discussion.

Chances are that these lead to a lot of discussion points and possibly an easy PQ by stating bias/dangers in reporting and where they are in terms of covenant.

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