FedNat Co Net debt/EBITDA
What is the Net debt/EBITDA of FedNat Co?
The Net debt/EBITDA of FedNat Holding Co is 72.51
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 Finance sector on NASDAQ compared to FedNat Co
What does FedNat Co do?
FedNat Holding Company is a regional insurance holding company that controls substantially all aspects of the insurance underwriting, distribution and claims processes through its subsidiaries and contractual relationships with independent agents and general agents. The Company, through its wholly owned subsidiaries FedNat Insurance Company, Maison Insurance Company, and Monarch National Insurance Company, is focused on providing homeowners insurance in Florida, Texas, Louisiana, Alabama, South Carolina and Mississippi.
Companies with net debt/ebitda similar to FedNat Co
- Meridian Corp has Net debt/EBITDA of 71.93
- Fonciere Inea S.A has Net debt/EBITDA of 72.13
- I-Mab has Net debt/EBITDA of 72.20
- Tidewater Renewables Ltd has Net debt/EBITDA of 72.38
- Xiwang Property has Net debt/EBITDA of 72.40
- Shiloh Industries has Net debt/EBITDA of 72.44
- FedNat Co has Net debt/EBITDA of 72.51
- So-Young International has Net debt/EBITDA of 72.60
- Select Harvests has Net debt/EBITDA of 72.85
- Ellington Credit Co has Net debt/EBITDA of 72.90
- NexPoint Hospitality Trust has Net debt/EBITDA of 72.90
- WH Smith Plc has Net debt/EBITDA of 72.98
- Katek Se Inh O.N has Net debt/EBITDA of 73.29