Debt Advisory Insights | March 2026
Financial Key Figures in Focus
How Cash Flow, Leverage, and Covenants Influence Creditor Claims
In the current market environment, lending remains selective, with increasing requirements for transparency, quality of financial metrics and capital structure. As a result, financial KPIs are becoming a central element of strategic financing decisions for CFOs and shareholders.
Our latest Oaklins Debt Advisory Insight, “Financial Metrics in Focus,” demonstrates how companies can actively manage cash flow, leverage and covenants to strengthen their negotiating position with capital providers.
At its core lies a clear insight: Those who understand and actively manage their financial metrics shift from a reactive stance to a position of strategic control in financing discussions.
The report structures credit assessment along three key dimensions:
- Earnings quality & cash flow stability as the foundation for leverage capacity
- Leverage & debt service capacity to assess risk and capital structure
- Liquidity & financial flexibility as indicators of short-term resilience
Building on this, we analyze the most relevant credit metrics—from leverage and cash conversion to interest coverage and debt service coverage—and demonstrate how their targeted management directly impacts financing terms.
A particular focus is placed on the active management of the balance sheet: A strong equity ratio improves credit ratings, reduces risk premiums and expands financing capacity. The targeted use of mezzanine and hybrid capital further strengthens the economic equity base—without diluting shareholder ownership.
Five key success factors highlight what capital providers focus on today:
- Predictable, stable cash flows
- High quality and transparency of EBITDA figures
- Efficient cash conversion
- A solid equity base
- Consistent and clearly structured KPIs
The decisive lever, however, lies in translating these metrics into a compelling financing narrative: Through KPI validation, benchmarking and structured positioning, we work with companies to develop a tailored debt story—forming the foundation for improved terms, optimized covenants and greater transaction certainty.
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