Net Debt/EBIT

Metadata

  • Id: net_debt_to_ebit
  • Type: fundamentals
  • Subtype: ratios
  • Units: ratio
  • Decimal Points: 2
  • Currency Convertible: No

Description

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