Microsoft Net debt/EBITDA
What is the Net debt/EBITDA of Microsoft?
The Net debt/EBITDA of Microsoft Corporation is -0.46
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 Technology sector on NASDAQ compared to Microsoft
What does Microsoft do?
Microsoft Corporation is an American multinational technology corporation headquartered in Redmond, Washington. Microsofts best-known software products are the Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers.
Companies with net debt/ebitda similar to Microsoft
- NIKE has Net debt/EBITDA of -0.46
- Cytokinetics Inc has Net debt/EBITDA of -0.46
- Teekay Tankers Ltd has Net debt/EBITDA of -0.46
- Delmar Bancorp has Net debt/EBITDA of -0.46
- Scorpion Minerals has Net debt/EBITDA of -0.46
- SDX Plc has Net debt/EBITDA of -0.46
- Microsoft has Net debt/EBITDA of -0.46
- MediaValet has Net debt/EBITDA of -0.46
- Robert Walters Plc has Net debt/EBITDA of -0.46
- AutoWeb Inc has Net debt/EBITDA of -0.46
- Westport Fuel Systems has Net debt/EBITDA of -0.46
- Inspirit Plc has Net debt/EBITDA of -0.45
- Rightmove plc has Net debt/EBITDA of -0.45