Encounter Resources Net debt/EBITDA
What is the Net debt/EBITDA of Encounter Resources?
The Net debt/EBITDA of Encounter Resources Limited is 33.63
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 Materials sector on ASX compared to Encounter Resources
What does Encounter Resources do?
Encounter Resources Limited engages in the exploration and development of mineral deposits in Australia. It explores for zinc, copper, gold, and cobalt deposits. The company holds interests in the Lamil and Yeneena projects located in the Paterson Province, Western Australia. It also holds interests in the Aileron project situated in the West Arunta, Western Australia; and the Elliott copper project located in the Northern Territory. The company was incorporated in 2004 and is based in Subiaco, Australia.
Companies with net debt/ebitda similar to Encounter Resources
- Yee Hop has Net debt/EBITDA of 33.49
- Apex Global Brands Inc has Net debt/EBITDA of 33.51
- Cascades has Net debt/EBITDA of 33.54
- Repare Therapeutics has Net debt/EBITDA of 33.57
- Amplitude Surgical SA has Net debt/EBITDA of 33.60
- Kangda International Environmental has Net debt/EBITDA of 33.61
- Encounter Resources has Net debt/EBITDA of 33.63
- Matthews International has Net debt/EBITDA of 33.63
- First Savings Inc has Net debt/EBITDA of 33.64
- Griffin Industrial Realty Inc has Net debt/EBITDA of 33.69
- LaSalle Exploration has Net debt/EBITDA of 33.70
- LaSalle Exploration has Net debt/EBITDA of 33.71
- American Finance Trust has Net debt/EBITDA of 33.73