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Safehold Net debt/EBITDA

What is the Net debt/EBITDA of Safehold?

The Net debt/EBITDA of Safehold Inc. is -398.83

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 Real Estate sector on NYSE compared to Safehold

What does Safehold do?

istar (nyse: star) finances, invests in and develops real estate and real estate related assets as an adaptive investment company. building on over two decades of experience and more than $35 billion of transactions, istar brings uncommon capabilities and new ways of thinking to commercial real estate. structured as a real estate investment trust (“reit”), its portfolio is diversified by asset type, property type, geography and obligor, with a focus on larger assets located in major metropolitan markets. additional information on istar is available on the company's website at www.istar.com.

Companies with net debt/ebitda similar to Safehold