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Investments glossary

Debt-to-EBITDA Ratio (Debt/EBITDA Ratio)

Debt/EBITDA—earnings before interest, taxes, depreciation, and amortization—is a ratio measuring the amount of income generated and available to pay down debt before covering interest, taxes, depreciation, and amortization expenses. Debt/EBITDA measures a company’s ability to pay off its incurred debt. A high ratio result could indicate a company has a too-heavy debt load.

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