Debt/EBITDA ratio is a measure of a company’s ability to pay off its incurred debt. It shows how many years it would take for a company to repay its debt using its earnings before interest, taxes, depreciation, and amortization (EBITDA).
The formula for debt/EBITDA ratio is:
Debt/EBITDA ratio = Total debt / Trailing 12 month EBITDA
Where:
- Total debt is R0036,
short_and_long_term_debt
- Trailing 12 month EBITDA is TM007,
ttm_ebitda