debt/EBITDA ratio
USA
leverage ratio, Also known as the debt/EBITDA ratio.
The ratio of debt (borrowings) to EBITDA, often expressed as a percentage or ratio. It is often used as a measure of the risk attached to a company because a highly leveraged company has a large interest burden which has to be met whether or not profits are made.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • Debt/EBITDA — A measure of a company s ability to pay off its incurred debt. This ratio gives the investor the approximate amount of time that would be needed to pay off all debt, ignoring the factors of interest, taxes, depreciation and amortization.… …   Investment dictionary

  • Net Debt To EBITDA Ratio — A measurement of leverage, calculated as a company s interest bearing liabilities minus cash or cash equivalents, divided by its EBITDA. The net debt to EBITDA ratio is a debt ratio that shows how many years it would take for a company to pay… …   Investment dictionary

  • EBITDA To Fixed Charges — A ratio used to measure a company s ability to incur additional debt or its ability to pay off existing debt. The ratio is usually measured as EBITDA over fixed charges over a trailing four quarter period. In this ratio, fixed charges generally… …   Investment dictionary

  • EBITDA — Earnings before interest, taxes, depreciation and amortisation. Also known as gross operating profit. + EBITDA USA Earnings before the deduction of interest, taxes, depreciation and …   Law dictionary

  • EBITDA-To-Interest Coverage Ratio — A ratio that is used to assess a company s financial durability by examining whether it is at least profitably enough to pay off its interest expenses. A ratio greater than 1 indicates that the company has more than enough interest coverage to… …   Investment dictionary

  • Debt-to-equity ratio — The debt to equity ratio (D/E) is a financial ratio indicating the relative proportion of shareholders equity and debt used to finance a company s assets.[1] Closely related to leveraging, the ratio is also known as Risk, Gearing or Leverage. The …   Wikipedia

  • Debt-Adjusted Cash Flow - DACF — A financial ratio commonly used in the analysis of oil companies, representing the after tax operating cash flow, excluding financial expenses after taxes. Debt adjusted cash flow (DACF) is calculated as follows: DACF = cash flow from operations… …   Investment dictionary

  • Ratio financier — En comptabilité, un ratio est un rapport calculé entre deux masses fonctionnelles du bilan et/ou du compte de résultat. Il se traduit par un pourcentage ou un coefficient. Il existe plus de cent ratios permettant de formuler une opinion motivée… …   Wikipédia en Français

  • leverage ratio — USA leverage ratio, Also known as the debt/EBITDA ratio. The ratio of debt (borrowings) to EBITDA, often expressed as a percentage or ratio. It is often used as a measure of the risk attached to a company because a highly leveraged company has a… …   Law dictionary

  • Financial ratio — Corporate finance …   Wikipedia

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