The Debt-to-EBITDA Ratio is a financial metric used to measure a company's ability to pay off its incurred debt.Specifically, the Debt-to-EBITDA Ratio indicates how many years a company would need to operate at its current level of earnings to pay off all its debt. Hence, it gives an idea of the company's leverage position and its ability to cover its debt.
Learn Debt-to-EBITDA Ratio with interactive examples and practice exercises in our Performance Metrics module.
This interactive learning module helps you understand Debt-to-EBITDA Ratio through hands-on practice and real-world examples.