Die Heuning Pot Literature Guide
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Finance Glossary

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Debt-to-EBITDA

Definition:

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.

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