Financial Ratios

Net Debt to EBITDA

Definition

What is Net Debt to EBITDA?

Net debtInterest-bearing debt minus cash and cash equivalents. divided by EBITDAEarnings before interest, tax, depreciation, and amortisation..

Example in practice

How This Looks in Practice

₦8 billion net debt and ₦2 billion EBITDA produce four-times leverageThe use of borrowed money or derivatives to increase exposure relative to invested capital..

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Related Terms

Financial Ratios

Gross Margin

Gross profit expressed as a percentage of revenue.

Financial Ratios

Operating Margin

Operating profit expressed as a percentage of revenue.

Financial Ratios

EBITDA Margin

EBITDA expressed as a percentage of revenue.

Equity Valuation

Earnings Per Share

Net income attributable to ordinary shareholders divided by weighted average ordinary shares.

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