Altech Chemicals Net debt/EBITDA
What is the Net debt/EBITDA of Altech Chemicals?
The Net debt/EBITDA of Altech Chemicals Limited is 0.32
What is the definition of Net debt/EBITDA?
The net debt to earnings before interest, taxes, depreciation, and amortization (Net debt/EBITDA) ratio measures financial leverage and the company’s ability to pay off its debt. It shows how long it would take the company to pay off all its debt with operations at the current level.
The net debt to EBITDA ratio is calculated as Net debt divided by EBITDA. It is similar to the debt to EBITDA ratio, but cash and cash equivalents are subtracted in net debt.
Net debt = short-term debt + long-term debt - cash and cash equivalents
EBITDA = net income + interest expense + taxes + depreciation + amortization
Lower debt debt to EBITDA ratio indicates the company is not heavily indebted and should be able to repay its obligations. Alternatively, higher ratio indicated the company is excessively indebted. The ratio varies between industries as different industries have different capital requirements. Usually, the ratio should be compared to a benchmark or an industry average to determine the company’s credit risk. Generally, a net debt to EBITDA ratio above 4 or 5 is considered high.
Net debt/EBITDA of companies in the Materials sector on ASX compared to Altech Chemicals
What does Altech Chemicals do?
Altech Chemicals Limited focuses on producing high purity alumina used in the production of synthetic sapphire. It holds 100% interest in a kaolin deposit located in the Meckering, Western Australia. The company was formerly known as Australia Minerals and Mining Group Limited and changed its name to Altech Chemicals Limited in November 2014. Altech Chemicals Limited was incorporated in 2007 and is based in Subiaco, Australia.
Companies with net debt/ebitda similar to Altech Chemicals
- Kinsale Capital Inc has Net debt/EBITDA of 0.32
- Union Bankshares has Net debt/EBITDA of 0.32
- Mettler-Toledo International has Net debt/EBITDA of 0.32
- Quantify Technology has Net debt/EBITDA of 0.32
- Adamis Pharmaceuticals Corp has Net debt/EBITDA of 0.32
- Pretium Resources has Net debt/EBITDA of 0.32
- Altech Chemicals has Net debt/EBITDA of 0.32
- Amicus Therapeutics has Net debt/EBITDA of 0.32
- Atari SA has Net debt/EBITDA of 0.32
- Star Diamond has Net debt/EBITDA of 0.33
- Nuvei has Net debt/EBITDA of 0.33
- E. Bon has Net debt/EBITDA of 0.33
- Pacific Basin Shipping has Net debt/EBITDA of 0.33