Debt / EBITDA

Years of operating earnings needed to repay all debt.

In simple terms: Roughly how many years of operating earnings it would take to pay off all of its debt.

Why should I care?

Too much debt can make a company more vulnerable when business conditions become difficult.

Calculated from reported figures

How it's calculated

Total debt ÷ EBITDA

In general, a lower value is considered favourable — but always compare within the same industry, because what counts as “normal” varies widely.

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