Advanced Industries Net debt/EBITDA

What is the Net debt/EBITDA of Advanced Industries?

The Net debt/EBITDA of Advanced Energy Industries Inc. is 0.59

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 Technology sector on NASDAQ compared to Advanced Industries

What does Advanced Industries do?

advanced energy has devoted more than three decades to perfecting power—enabling design breakthroughs and driving growth for leading semiconductor and industrial customers. our precision power and control technologies, along with our applications know-how, inspire close partnerships and perpetual innovation in thin-film and industrial manufacturing. founded in 1981, advanced energy has built a diversified and global business, delivering advanced power and control technologies to customers across a broad range of industries. the ae team, deployed throughout north america, europe, and asia, provides technical expertise and responsive and agile power solutions for thin-film and industrial manufacturing.

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