A Net debt/EBITDA az Beasley Broadcast Group Inc - 41.75
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.
beasley media group, inc. is a subsidiary of beasley broadcast group, inc. (nasdaq: bbgi), which was founded in 1961 by george g. beasley. today, beasley broadcast group owns and operates 69 stations (50 fm and 19 am) in 16 large-and mid-size markets in the united states. approximately 20.1 million consumers listen to beasley radio stations weekly over-the-air, online and on smartphones and tablets and millions regularly engage with the company’s brands and personalities through digital platforms such as facebook, twitter, text, apps and email. for more information, visit www.bbgi.com.