Net debt/EBIT ratio is a measure of a company’s ability to pay off its debt using its earnings before interest and taxes (EBIT). It shows how many years it would take for a company to repay its debt after subtracting its cash and cash equivalents. The formula for net debt/EBIT ratio is:
Net debt/EBIT ratio = Net debt / Trailing 12 month EBIT
Where:
- Net debt is R0015,
net_debt
- Trailing 12 month EBIT is TM008,
ttm_oper_inc