Capricorn Metals Ltd Net debt/EBITDA
What is the Net debt/EBITDA of Capricorn Metals Ltd?
The Net debt/EBITDA of Capricorn Metals Ltd is -1.44
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 Capricorn Metals Ltd
What does Capricorn Metals Ltd do?
Capricorn Metals Ltd explores for, evaluates, and develops mineral properties in Australia and Madagascar. It holds a 100% interest in the Karlawinda gold project located in the Pilbara region of Western Australia. The company was formerly known as Malagasy Minerals Limited and changed its name to Capricorn Metals Limited in February 2016. Capricorn Metals Limited was incorporated in 2006 and is based in West Perth, Australia.
Companies with net debt/ebitda similar to Capricorn Metals Ltd
- Ituran Location And Control has Net debt/EBITDA of -1.46
- Neptune Wellness Solutions has Net debt/EBITDA of -1.45
- Games Workshop Plc has Net debt/EBITDA of -1.45
- Rockwell Medical Inc has Net debt/EBITDA of -1.45
- Hilltop Inc has Net debt/EBITDA of -1.45
- Nemetschek SE has Net debt/EBITDA of -1.45
- Capricorn Metals Ltd has Net debt/EBITDA of -1.44
- MyFiziq has Net debt/EBITDA of -1.44
- China Mobile has Net debt/EBITDA of -1.44
- Cubicfarm Systems Corp has Net debt/EBITDA of -1.44
- MasterCraft Boat Inc has Net debt/EBITDA of -1.44
- HTC Purenergy has Net debt/EBITDA of -1.44
- Newton Resources Ltd has Net debt/EBITDA of -1.44