what is the debt to ebitda ratio 
debt to earnings before interest taxes depreciation and amortization ebitda is a ratio that measures the amount of income generated and available to pay down debt before a company accounts for interest taxes depreciation and amortization expenses a high ratio result could indicate a company has a debt load that might be too high banks often include a certain debt to ebitda target in the covenants for business loans and a company must maintain this agreed upon level or risk having the entire loan become due immediately credit rating agencies commonly use this metric to assess a company s probability of defaulting on issued debt firms with a high debt to ebitda ratio may not be able to service their debt appropriately leading to a lowered credit rating formula and calculationdebt to ebitda debt ebitda text debt to ebitda frac text debt text ebitda debt to ebitda ebitdadebt 