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Beam Therapeutics Net debt/EBITDA

What is the Net debt/EBITDA of Beam Therapeutics?

The Net debt/EBITDA of Beam Therapeutics Inc. is 29.21

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 Health Care sector on NASDAQ compared to Beam Therapeutics

What does Beam Therapeutics do?

Beam Therapeutics Inc., a biotechnology company, develops precision genetic medicines for patients suffering from serious diseases in the United States. The company is developing BEAM-101 for the treatment of sickle cell disease and beta thalassemia; BEAM-102 for the treatment of sickle cell disease; and BEAM-201, an allogeneic chimeric antigen receptor T cell for the treatment of relapsed/refractory T-cell acute lymphoblastic leukemia. It also develops therapies for alpha-1 antitrypsin deficiency and glycogen storage disorder 1a; and therapies for ocular and central nervous system disorders. The company has a strategic alliance with Boston Children's Hospital; a research and clinical collaboration agreement with Magenta Therapeutics, Inc.; and a research collaboration with the Institute of Molecular and Clinical Ophthalmology Basel. It also has a research collaboration with Apellis Pharmaceuticals, Inc. to apply base editing technology for discovering new treatments for complement-driven diseases. Beam Therapeutics Inc. was incorporated in 2017 and is headquartered in Cambridge, Massachusetts.

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