Net debt/EBITDA ratio is a measure of a company’s ability to pay off its debt using its earnings before interest, taxes, depreciation, and amortization (EBITDA). 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/EBITDA ratio is:
Net debt/EBITDA ratio = Net debt / Trailing 12 month EBITDA
Where:
- Net debt is R0015,
net_debt
- Trailing 12 month EBITDA is TM007,
ttm_ebitda