Net Debt to EBIT

Net Debt to EBIT = (Long-term debt + Short term debt – Cash) / Earnings before interest and taxes (EBIT).

This ratio shows you how able a company is to pay interest and capital on its net debt outstanding. The smaller the ratio (means the company has got a low amount of debt compared to EBIT) the stronger the company's ability to be able to meet its interest and capital payments.

 

How to use the ratio

Available as a screening ratio: Yes

Available as an output column ratio: Yes (Look for it under the Quality heading)

 

How to select companies with the lowest Net Debt to EBIT ratio

To find companies with the lowest Net Debt to EBIT ratio set the slider from 0% to 10%.

 

Remember

All ratios are calculated on a trailing 12 months (TTM) basis.

This means the last twelve months (not the company’s financial year) is compared to the same period in the past.

We do this to make sure that the screener data includes the latest, most up to date, financial results of the company.

 

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