Measurement used to predict a company's ability to pay off the debt it already has. The ratio calculates the amount of time required for the business to pay off all debt, but does not take into considerations like interest, depreciation, taxes or amortization. Having a high debt/EBITDA ratio will often result in a lower credit score for the business.
Related information about debt/EBITDA ratio:
- Debt/EBITDA Definition | Investopedia
A high debt/EBITDA ratio suggests that a firm may not be able to service their debt in an appropriate manner and can result in a lowered credit rating. Conversely ...
- Debt/EBITDA Ratio
Debt/EBITDA ratio is the comparison of financial borrowings and earnings before interest, taxes, depreciation and amortization. This is a very commonly used ...
- Debt/EBITDA ratio - Financial Dictionary - The Free Dictionary
This ratio typically is used to gain a sense for how many periods a company would have to operate at the same level of earnings in order to pay off its current ...
- Explanation of Debt to EBITDA Ratio | eHow.com
Explanation of Debt to EBITDA Ratio. The debt to EBITDA ratio shows whether a company has the ability to pay off its short-term debts. The ratio is calculated as ...
- What is debt/EBITDA ratio? definition and meaning
Definition of debt/EBITDA ratio: Measurement used to predict a company's ability to pay off the debt it already has. The ratio calculates the amount of time ...
- Debt/EBITDA ratio Definition - NASDAQ.com
Debt/EBITDA ratio: read the definition of Debt/EBITDA ratio and 8000+ other financial and investing terms in the NASDAQ.com Financial Glossary.
- Debt EBITDA ratio definition | Financial ratios
Debt to ebitda ratio interests company's investors while making a decision whether to invest or not in the company.
- Net debt/EBITDA Net debt/Equity - The Motley Fool Discussion Boards
Apr 1, 2011 ... Typically you'll see in bank loan covenants that a company's debt/EBITDA ratio can't go above around 5 or so. Net debt/equity is a capital ...