These companies must pay interest on their loans. EBITDA does not include this expense, since companies have varying debt structures. "Think of EBITDA as the starting line in a race, whereas net ...
When a company issues more debt, its EV increases, raising the EV/EBITDA ratio. However, debt also increases the interest expense, which reduces the EBITDA, lowering the EV/EBITDA ratio.
For example, telecommunication companies have high depreciation rates on their capital investments coupled with high interest payments on debt used to finance their investments. Companies such as ...
SBB says the debt coverage ratio of net interest-bearing debt to Ebitda is 13.7, which is double the upper limit of 6.5 set by the government. SBB currently estimates that the coronavirus pandemic ...
SK Hynix Inc (FRA:HY9H) reports a robust Q4 with significant revenue growth and strategic advancements in high-value products, despite facing market uncertainties.