medium · Corporate Credit Analysis
TerraMining operates in a cyclical industry. In its peak year, it earned $1,335M in EBITDA, but in its worst trough year, it earned $920M.
If current debt is $3,500M, what is the through-cycle leverage ratio using a simple 5-year average EBITDA if the intervening years were $1,230M, $1,165M, and $1,090M?
- 2.62x
- 3.80x
- 3.21x
- 3.05x
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