easy · Corporate Credit Analysis fsa

What does a Debt / EBITDA ratio of 4.0x suggest to a credit analyst?

1. The company holds 4 dollars of total assets for every 1 dollar of outstanding debt.
2. The company's interest expense is currently running 4 times higher than its EBITDA.
3. It would take 4 years to repay total debt if all EBITDA were used for debt reduction.
4. The company is growing its annual revenue at a compounded rate of roughly 4%.

Sign up free to see the explanation and track your rank →