Net Debt / EBITDA
Short definition
Net debt/EBITDA is net financial debt over operating EBITDA. It is a coarse leverage metric and the backbone of many maintenance covenants; it does not measure cash-paying power as directly as DSCR.
Detailed explanation
The numerator is the net-debt definition; the denominator is reported or adjusted EBITDA. Forward EBITDA inflates the denominator and understates leverage. IFRS 16 puts lease liabilities in the numerator and takes rent out of the denominator, breaking the series.
The ratio mixes a stock with a flow: EBITDA is not cash, and net debt hides tenor. In inventory-heavy names DSCR breaks earlier at the same leverage.
Why it matters for the CFO
Pricing, dividend lock-ups and acquisition capacity hang on this turn. The CFO cannot call leverage “comfortable” without checking CFADS and the maturity wall.
How it is calculated
Net borç / FAVÖK = Net borç ÷ Dönem FAVÖK (LTM veya sözleşmedeki tanım)
Variables in the formula
- Leverage: Net debt / EBITDA (turns)
How to read it
3.5x means net debt is 3.5 times EBITDA — arithmetic in an example, not a universal cap. The maximum asked depends on sector, cash-flow stability, collateral and lender policy. LTM EBITDA inflates the ratio at the cycle trough and understates it at the peak.
Numerical example
Net debt 420 mn TL, EBITDA 120 mn TL → net debt/EBITDA = 420 / 120 = 3.5x.
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Definitions are educational. They are not investment, credit or tax advice.