Net debt / EBITDA
Debt minus cash, in years of operating earnings.
How to read it
Below about 2 is comfortable; above 4 is heavy. Negative means more cash than debt.
How to use it
Years of earnings needed to repay debt — the lenders' measure.
In Kereon
Investing · company. Net debt from the balance sheet (total debt less cash where no net-debt line is filed) ÷ the vendor's EBITDA.
Also called: net debt / ebitda, net debt/ebitda.