Early Warning - Financial Guidelines

Legislative Decree 14/2019 - The new Business Crisis Code introduces obligations for the entrepreneur (art. 2086 cc) and tools aimed at anticipating and limiting the worsening of business crises.  

Warrant Hub, thanks to the experience gained over the years, has created the Early Warning service in line with the new reform, aimed at implementing an ORGANISATIONAL - ADMINISTRATIVE - ACCOUNTING set-up suitable for the prevention of business crisis.

What we do for you

Early Warning is a forward-looking package, useful for forecasting cash flow trends and adequacy in advance, also through the analysis of specific indicators specified by regulations and the monitoring of other information (investments, corporate strategies, revaluations, M&A) and data available to the company.

Among these ratios is the Debt Service Coverage Ratio, known as DSCR. 

The DSCR is the financial ratio that measures a company's ability to generate sufficient resources to meet its financial obligations (in terms of principal and interest to be repaid over the time horizon in question).

There is no single formulation of this indicator (the Business Crisis Code itself formulates two); however, we believe that the DSCR formula can be summarised as follows:

DSCR= Operating Cash Flow - Taxes / Debt Service Cash Flow

where in the numerator we have the cash flow from operations net of outgoings related to the payment of taxes on operating income, and in the denominator the cash flow to debt service (consisting of principal and interest on loans) in the period under consideration.

Who we cater for

We address companies of any size, based in Italy.

How we do it