What the Debt-to-EBITDA Ratio Signifies and How to Calculate It

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What Is Debt-to-EBITDA?
What Is EBITDA?
What Is Debt?
Debt-to-EBITDA Ratio Formula
How the Debt-to-EBITDA Ratio Works
Calculating Debt-to-EBITDA
Uses of Debt-to-EBITDA
Pros and Cons of Using the Debt-to-EBITDA Ratio
Pros
Cons
Debt-To-EBITDA Ratio Example
Calculation Example
The Takeaway
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Frequently Asked Questions
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About the Author
Su Guillory is a freelance business writer and expat coach. She’s written several business books and has been published on sites including Forbes, AllBusiness, and SoFi. She writes about business and personal credit, financial strategies, loans, and credit cards.
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