© 2015 Shmoop University, Inc. All rights reserved.

Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.



Debt-to-EBITDA is a ratio used by bankers and investors as one key data point in determining how leveraged a company is - or rather, to determine how easy it will likely be for the company to pay back the debt it has taken out. EBITDA is basically a proxy for the company's cash flow and debt of more than 3 or 4 times cash flow is considered very high on most planets.