Balance Sheet & Working Capital

Net Debt / EBITDA

Measures the relationship between operating profit before depreciation and amortization and the company's ability to pay. Its purpose is to estimate resilience under profit declines, higher rates, maturities and refinancing needs.

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Net Debt / EBITDA

netDebtToEbitda · Balance Sheet & Working Capital

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Definition: Measures the relationship between operating profit before depreciation and amortization and the company's ability to pay. Its purpose is to estimate resilience under profit declines, higher rates, maturities and refinancing needs.
Uses: Key in utilities, real estate, industrials, telecom, roll-ups and cyclicals. In banks and insurers it must be read with sector-specific regulatory ratios. Complement with maturities, covenants, interest coverage, FCF, liquidity and net debt.