Returns & Safety

What is Net Debt / EBITDA?

How many years of operating cash earnings it would take to repay net debt.

How it is calculated

Net debt divided by EBITDA, which is operating income plus depreciation and amortization.

How to read it

Below 1 is conservative, 1 to 3 is typical, above 3 is heavy for most industries. Negative means the company holds net cash.

Keep in mind

Shown for annual reports and trailing twelve months only, since a single quarter would understate a full year of activity.

Where the numbers come from

Scrutar computes Net Debt / EBITDA from the figures each company reports to the SEC in its annual and quarterly filings, using the XBRL data attached to those filings.

More Returns & Safety metrics

ROICReturn on invested capital: the after-tax profit the business earns on all the money invested in it, from lenders and shareholders alike.How to read it →Interest CoverageHow many times operating profit covers the interest bill.How to read it →Effective Tax RateThe share of pre-tax profit paid as income tax.How to read it →

See it for a real company

Ten years of Net Debt / EBITDA and every other metric on this page, for every company Scrutar covers, computed from SEC filings.

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