The Working-Capital Reset: Identifying Businesses Worth Saving Series Context The first four articles of this series established the full diagnostic architecture of capital structure failure. The Liquidity Cycle: Why Credit Deterioration Is A Cash Timing Failure, Not A Lending Failure, mapped how cash moves through an operating business and why credit stress is a cash...
Overfunded Debt: How Oversized Loans Destroy Viable Businesses Series Navigation Article 1 — The Liquidity Cycle Article 2 — The EBITDA Illusion Article 3 — The Cash Conversion Cycle Article 4 — Overfunded Debt: How Oversized Loans Destroy Viable Businesses (current) Article 5 — The Working-Capital Reset: Identifying Businesses Worth Saving Series Context The first...
The Cash Engine Framework A Series on Capital Structure Governance for CEOs and CFOs Debt capacity is not determined by EBITDA. It is determined by how cash actually moves through a business. Many companies that appear stable on paper begin to experience pressure long before it shows up in earnings, covenants, or lender conversations. The...
The EBITDA Illusion: Why EBITDA Fails as a Debt Capacity Metric Series Context Article 1 — The Liquidity Cycle established the operating cycle as the governing structure behind capital. Cash does not move in a straight line from revenue to availability. It enters the business, is absorbed by working capital, and returns only when the...
The Liquidity Cycle: Why Credit Deterioration Is a Cash Timing Failure, Not a Lending Failure Introduction Credit deterioration is typically observed at the point of covenant breach, restructuring, or default. But those events are not the origin of failure—they are its surface expression. The structural problem begins earlier, in how debt is sized, underwritten, and...
