Debt-to-EBITDA (D/EBITDA)
How many years of earnings would it take to repay all debt?
Definition
D/EBITDA measures debt relative to a company's earnings before interest, taxes, depreciation, and amortization. It is preferred over D/E for comparing companies with different capital intensity.
Formula
Only meaningful when EBITDA > 0.
Interpretation
| Range | Assessment |
|---|---|
| < 2.0 | Low debt — comfortable repayment capacity |
| 2.0 – 4.0 | Moderate — manageable for most businesses |
| 4.0 – 6.0 | Elevated — may face refinancing pressure |
| > 6.0 | High risk — debt service is a significant burden |
Industry Routing
Only available for Industrial companies (Operating Profit field required). Banking and Insurance do not report EBITDA.
In Finsco
Computed by the audit debt-discipline command.
Related Metrics
- D/E Ratio — debt vs equity (balance sheet metric)
- Interest Coverage — can the company pay interest?