Chevron Net debt/EBITDA
What is the Net debt/EBITDA of Chevron?
The Net debt/EBITDA of Chevron Corp. is 1.32
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 NYSE compared to Chevron
What does Chevron do?
Chevron Corporation is an American multinational energy corporation predominantly in oil and gas. The second-largest direct descendant of Standard Oil, and originally known as the Standard Oil Company of California, it is headquartered in San Ramon, California, and active in more than 180 countries.
Companies with net debt/ebitda similar to Chevron
- World Wrestling Entertainment has Net debt/EBITDA of 1.31
- Ordina N.V has Net debt/EBITDA of 1.31
- Antofagasta plc has Net debt/EBITDA of 1.31
- co.don AG has Net debt/EBITDA of 1.31
- Yorbeau Resources has Net debt/EBITDA of 1.31
- Yamana Gold has Net debt/EBITDA of 1.31
- Chevron has Net debt/EBITDA of 1.32
- Abcourt Mines has Net debt/EBITDA of 1.32
- ON Semiconductor has Net debt/EBITDA of 1.32
- Applied Industrial Technologies has Net debt/EBITDA of 1.32
- The Interpublic of Companies has Net debt/EBITDA of 1.32
- Jintai has Net debt/EBITDA of 1.32
- Silver Spruce Resources has Net debt/EBITDA of 1.32