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 using its operating income. The formula for debt/EBIT ratio is:
Debt/EBIT ratio = Total debt / Trailing 12 month EBIT
Where:
- Total debt is R0036,
short_and_long_term_debt
- Trailing 12 month EBIT is TM008,
ttm_oper_inc