what is the net debt to ebitda ratio 
the net debt to ebitda earnings before interest depreciation and amortization ratio is a measurement of leverage calculated as a company s interest bearing liabilities minus cash or cash equivalents divided by its ebitda the net debt to ebitda ratio is a debt ratio that shows how many years it would take for a company to pay back its debt if net debt and ebitda are held constant however if a company has more cash than debt the ratio can be negative it is similar to the debt ebitda ratio but net debt subtracts cash and cash equivalents while the standard ratio does not the formula for net debt to ebitda is n e t d e b t t o e b i t d a t o t a l d e b t c a s h e q u i v a l e n t s e b i t d a net debt to ebitda frac total debt cash equivalents ebitda net debt to ebitda ebitdatotal debt cash equivalents investopedia julie bang