GLOSSARY

Covenant

IN PLAIN ENGLISH

A condition in a loan agreement, such as a maximum ratio of debt to profit, that the borrower must stay within.

WHERE YOU MEET IT

Not shown in the app. The borrowings note in the annual report describes them.

WATCH OUT FOR

Some restrict dividends directly, and a company near a limit may cut to stay inside it.

EXPLAINED IN

Debt and the dividend

Educational content only. It is not personal financial advice.