Debt-to-EBITDA

Debt-to-EBITDA is debt divided by earnings before interest, taxes, depreciation, and amortization, using the issuer’s stated definitions.

Why this matters to income investors

Borrower leverage helps show how vulnerable interest payments are to falling earnings.

How to use debt-to-ebitda in your research

Check the exact numerator, denominator, and reporting period in the company’s filing. Follow the trend and look for debt or interest costs growing faster than the earnings available to pay them.

This material is general education and information, not individualized investment, tax, or legal advice.