What is Debt-to-EBITDA?
Total debt divided by EBITDA. Measures how many years of earnings it would take to pay off all debt. <2x: low leverage. 2–3x: moderate. >4x: high, potential concern for credit rating. >6x: very high risk.
Total debt divided by EBITDA. Measures how many years of earnings it would take to pay off all debt. <2x: low leverage. 2–3x: moderate. >4x: high, potential concern for credit rating. >6x: very high risk.