TAG Oil Net debt/EBITDA
What is the Net debt/EBITDA of TAG Oil?
The Net debt/EBITDA of TAG Oil Ltd. is 15.90
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 Energy sector on TSXV compared to TAG Oil
What does TAG Oil do?
TAG Oil Ltd., together with its subsidiaries, engages in the exploration, development, and production of oil and gas in Canada, New Zealand, and Australia. It operates exploration and production permits in New Zealand; and an exploration and production permit in Australia. The company was formerly known as Durum Cons. Energy Corp. and changed its name to TAG Oil Ltd. in June 2002. TAG Oil Ltd. was incorporated in 1990 and is headquartered in Vancouver, Canada.
Companies with net debt/ebitda similar to TAG Oil
- Enel SpA has Net debt/EBITDA of 15.88
- Dios Exploration has Net debt/EBITDA of 15.88
- 5N Plus has Net debt/EBITDA of 15.89
- WideOpenWest Inc has Net debt/EBITDA of 15.89
- Tai Hing has Net debt/EBITDA of 15.90
- SPIE SA has Net debt/EBITDA of 15.90
- TAG Oil has Net debt/EBITDA of 15.90
- Sally Beauty Inc has Net debt/EBITDA of 15.90
- Hidili Industry International Development has Net debt/EBITDA of 15.90
- Siemens Aktiengesellschaft has Net debt/EBITDA of 15.90
- Siemens Aktiengesellschaft has Net debt/EBITDA of 15.90
- Cleanaway Waste Management has Net debt/EBITDA of 15.91
- Intevac has Net debt/EBITDA of 15.91