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Carnival Net debt/EBITDA

What is the Net debt/EBITDA of Carnival?

The Net debt/EBITDA of Carnival Corp. is 22.34

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 Consumer Discretionary sector on NYSE compared to Carnival

What does Carnival do?

carnival corporation & plc is a global cruise company and one of the largest vacation companies in the world. our portfolio of leading cruise brands includes carnival cruise lines, holland america line, princess cruises and seabourn in north america; p&o cruises (uk), and cunard in the united kingdom; aida cruises in germany; costa cruises in southern europe; iberocruceros in spain; and p&o cruises (australia) in australia. these brands, which comprise the most recognized cruise brands in north america, the united kingdom, germany and italy, offer a wide range of holiday and vacation products to a customer base that is broadly varied in terms of cultures, languages and leisure-time preferences. we also own a tour company that complements our cruise operations: holland america princess alaska tours in alaska and the canadian yukon. combined, our vacation companies attract 10 million guests annually.

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