WPP Plc Net debt/EBITDA
What is the Net debt/EBITDA of WPP Plc?
The Net debt/EBITDA of WPP Plc. is 2.81
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 Communication Services sector on NYSE compared to WPP Plc
What does WPP Plc do?
WPP plc is a British multinational communications, advertising, public relations, technology, and commerce holding company headquartered in London, England.
Companies with net debt/ebitda similar to WPP Plc
- Arch Capital Ltd has Net debt/EBITDA of 2.80
- Mainz Biomed B.V. Eo 1 has Net debt/EBITDA of 2.80
- Great Southern Mining has Net debt/EBITDA of 2.81
- Westhaven Ventures has Net debt/EBITDA of 2.81
- Merchant House International has Net debt/EBITDA of 2.81
- Westlake Chemical Partners LP has Net debt/EBITDA of 2.81
- WPP Plc has Net debt/EBITDA of 2.81
- W. R. Berkley has Net debt/EBITDA of 2.82
- Austin Engineering has Net debt/EBITDA of 2.82
- Hangzhou Hopechart IoT Technology Co has Net debt/EBITDA of 2.82
- Titan Machinery Inc has Net debt/EBITDA of 2.82
- Public Storage Dep Shs Reps 1/1 has Net debt/EBITDA of 2.82
- Old Point has Net debt/EBITDA of 2.82