Magnum Mining and Exploration Net debt/EBITDA
What is the Net debt/EBITDA of Magnum Mining and Exploration?
The Net debt/EBITDA of Magnum Mining and Exploration Limited is 1.82
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 Materials sector on ASX compared to Magnum Mining and Exploration
What does Magnum Mining and Exploration do?
Magnum Mining and Exploration Limited engages in the exploration and evaluation of mineral properties. The company owns a 74% interest in the Gravelotte emerald project located in the Limpopo province of South Africa. It has a purchase agreement to acquire a 100% interest in the Buena Vista iron ore project located in Nevada, United States. The company was incorporated in 1986 and is based in Sydney, Australia.
Companies with net debt/ebitda similar to Magnum Mining and Exploration
- Aptargroup has Net debt/EBITDA of 1.82
- Stride Inc has Net debt/EBITDA of 1.82
- GAN has Net debt/EBITDA of 1.82
- Apple has Net debt/EBITDA of 1.82
- Zephyr plc has Net debt/EBITDA of 1.82
- Rincon Resources has Net debt/EBITDA of 1.82
- Magnum Mining and Exploration has Net debt/EBITDA of 1.82
- Deere has Net debt/EBITDA of 1.82
- Betmakers Technology Ltd has Net debt/EBITDA of 1.82
- Montem Resources has Net debt/EBITDA of 1.83
- Alpha Cognition has Net debt/EBITDA of 1.83
- Helius Medical Technologies Inc has Net debt/EBITDA of 1.83
- Sandstorm Gold Ltd has Net debt/EBITDA of 1.83