Echo Plc Net debt/EBITDA
What is the Net debt/EBITDA of Echo Plc?
The Net debt/EBITDA of Echo Energy Plc is -15.59
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 LSE compared to Echo Plc
What does Echo Plc do?
Echo Energy plc, through its subsidiaries, operates as an exploration and gas focused E&P company in Latin America. The company's asset portfolio consists of Santa Cruz Sur. It also engages in holding Argentinian and Bolivian branch assets. The company was formerly known as Independent Resources plc. Echo Energy plc was incorporated in 2005 and is based in London, the United Kingdom.
Companies with net debt/ebitda similar to Echo Plc
- Treasury Metals has Net debt/EBITDA of -15.66
- Par Technology has Net debt/EBITDA of -15.66
- Palo Alto Networks Inc has Net debt/EBITDA of -15.65
- CCT Fortis has Net debt/EBITDA of -15.63
- Claren has Net debt/EBITDA of -15.62
- Ye Xing has Net debt/EBITDA of -15.60
- Echo Plc has Net debt/EBITDA of -15.59
- Galantas Gold has Net debt/EBITDA of -15.59
- AMTD IDEA has Net debt/EBITDA of -15.59
- Ritamix Global has Net debt/EBITDA of -15.59
- Tsingtao Brewery Co has Net debt/EBITDA of -15.57
- Cogelec SA has Net debt/EBITDA of -15.55
- Euroeyes Intl Eye Clinic Ltd has Net debt/EBITDA of -15.54