Net debt / EBITDA

Debt net of cash, relative to operating earnings.

In simple terms: Years of operating earnings needed to pay off debt after first using the cash on hand.

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

Net 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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