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While a host of automation products have dramatically improved the treasury toolkit in recent years, important gaps remain. At a time when a debt covenant violation could plunge a company into a possibly fatal liquidity crisis, the tools for monitoring covenant compliance and getting alerts in time to avoid catastrophes are still primitive. Help is on the way, but don’t expect a slick, automated solution anytime soon. For now, most treasurers get by with the venerable spreadsheet. “We do all of our covenant compliance work, including sensitivity and scenario analysis, in Excel,” reports Rick Moss, treasurer of highly leveraged HanesBrands Inc., Winston-Salem, N.C. “We take financial planning information from the budgeting/forecasting group and dump it into the spreadsheet file. After that, we do our own ‘worst-case scenario’ work to see how much cushion we have before we are likely to breach key covenants.”

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