Executive & Board / Corporate Finance
Net Debt to EBITDA Leverage Ratio / Gearing (turns of leverage)
How many years of current earnings it would take to repay the company's net borrowings, the headline measure of financial leverage.
The fork, why two teams get different numbers
Both terms are contested and, worse, one is often defined by contract.
In the Metric Library
- The full fork, both definitions worked all the way through
- The trap that makes the number lie, on a real export
- Every formula variant, spelled out
- The reconciliation anchor, what to tie it to and when to refuse
Reference: FASB ASC 842 (Leases) · SEC Regulation G (non-GAAP EBITDA) · credit-agreement and rating-agency convention, no single authoritative standard