Net debt to EBITDA
Net debt to EBITDA shows how many years of operating profit before depreciation it would take to clear net financial debt. It is the most direct way to size borrowing against the ability to generate cash, and the benchmark banks write into loan covenants. Above 3 tends to raise flags, though the tolerable threshold depends heavily on the sector: a regulated utility lives comfortably with levels that would suffocate a cyclical business.
Formula
Deuda neta ÷ EBITDA See it on real data
Celsmar computes this from the accounts companies file with their regulator, and shows which line every figure comes from. Free to start, no card.
Definition for informational purposes. It is not financial advice nor a recommendation to buy or sell.