Sterling Plc Net debt/EBITDA
What is the Net debt/EBITDA of Sterling Plc?
The Net debt/EBITDA of Sterling Energy Plc is 38.57
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 Energy sector on LSE compared to Sterling Plc
What does Sterling Plc do?
Sterling Energy plc, together with its subsidiaries, operates as an upstream oil and gas company primarily in Africa and the Middle East. It is involved in the appraisal, exploration, development, and production of oil and gas. The company holds 34% interest in an exploration project covering approximately 22,840 square kilometers located in Somaliland. The company was incorporated in 1983 and is headquartered in London, the United Kingdom.
Companies with net debt/ebitda similar to Sterling Plc
- Land Securities Plc has Net debt/EBITDA of 38.34
- MERLIN Properties SOCIMI, S.A has Net debt/EBITDA of 38.39
- RioCan Real Estate Investment Trust has Net debt/EBITDA of 38.44
- Regional Health Properties Inc has Net debt/EBITDA of 38.44
- G8 Education has Net debt/EBITDA of 38.49
- Sotherly Hotels has Net debt/EBITDA of 38.49
- Sterling Plc has Net debt/EBITDA of 38.57
- Lai Fung has Net debt/EBITDA of 38.62
- Ziprecruiter has Net debt/EBITDA of 38.63
- Carrianna has Net debt/EBITDA of 38.66
- FinTech Chain has Net debt/EBITDA of 38.69
- American Hotel Income Properties REIT LP has Net debt/EBITDA of 38.71
- Liberty Media has Net debt/EBITDA of 38.73