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February 2023

Limitations of Debt to EBITDA and Interest Coverage Ratio

Corporate debt is an important aspect of the financial world, with businesses often taking on debt in order to finance their operations and growth strategies. However, too much debt can be a burden on a company's finances, potentially leading to financial distress and even bankruptcy. Metrics such as debt to EBITDA and interest coverage ratios are closely monitored by investors and analysts alike as a method of determining the debt carrying capacity of a company. These metrics have significant limitations however, which need to be taken into account. In the first article of this series, Nick Job elaborates on various aspects of the debt and treasury advisory business.

Provisional Tax Time

For all individuals, trusts and the majority of companies in South Africa, the second provisional tax return is due at the end of February. Here are some basic principles to bear in mind when attending to your provisional tax return for this period.

The Motivations and Pressures Behind Fraudulent Acts

In following from Part 1 – An Introduction to the Fraud Triangle, Part 2 of the series aims to analyse one of the factors that constitutes the fraud triangle i.e., motivation/pressure. Perpetrators rationalise various motivations/pressures prior the commission of fraud1. These motivations could either be external influences, i.e., environmental ‘push’ factors, or internal impulses, or a combination of both, that stem from the perpetrator’s psychological makeup. Please refer here for Part 1 of the series.