RIT Capital Partners Plc Net debt/EBITDA
What is the Net debt/EBITDA of RIT Capital Partners Plc?
The Net debt/EBITDA of RIT Capital Partners Plc is -2.68
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 LSE compared to RIT Capital Partners Plc
What does RIT Capital Partners Plc do?
RIT Capital Partners plc is a self-managed investment trust. The firm invests in the public equity and currency markets across the globe. It also invests in private investments and equity funds. The firm benchmarks the performance of its portfolio against the RPI plus 3% and MSCI All Country World Index (50% Sterling). It employs a top-down approach to make its investments. The firm makes its investments in companies operating across diversified sectors. RIT Capital Partners plc was founded on August 1, 1988 and is based in London, United Kingdom.
Companies with net debt/ebitda similar to RIT Capital Partners Plc
- Seiko Epson has Net debt/EBITDA of -2.69
- Wheaton Precious Metals has Net debt/EBITDA of -2.69
- Wheaton Precious Metals has Net debt/EBITDA of -2.69
- Spectra7 Microsystems Inc has Net debt/EBITDA of -2.69
- Televerbier SA has Net debt/EBITDA of -2.68
- Vistry PLC has Net debt/EBITDA of -2.68
- RIT Capital Partners Plc has Net debt/EBITDA of -2.68
- Wellard has Net debt/EBITDA of -2.68
- Volkswagen AG has Net debt/EBITDA of -2.68
- Volkswagen AG has Net debt/EBITDA of -2.68
- Global Mastermind Capital has Net debt/EBITDA of -2.68
- Zynex has Net debt/EBITDA of -2.68
- Zynex has Net debt/EBITDA of -2.68