leverage ratio

leverage ratio
USA
leverage ratio, Also known as the debt/EBITDA ratio.
The ratio of debt (borrowings) to EBITDA, often expressed as a percentage or ratio. It is often used as a measure of the risk attached to a company because a highly leveraged company has a large interest burden which has to be met whether or not profits are made.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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