Make It Banner kledo Formula and How Panama Phone Number to Calculate Debt to EBITDA Ratio Now that you understand what this ratio means lets look at the formula. The debt to EBITDA ratio formula is quite simple. You can calculate this ratio by taking a companys total debt and then dividing it by EBITDA. Debt to EBITDA Ratio Total debt EBITDA This data is usually obtained from the companys financial reports. Total debt can be found on the balance sheet EBITDA can easily be calculated from the income statement although it is a standard measure.
That can be presented somewhere in the financial statements such as in a footnote. Note that total debt equals longterm debt debt that matures in a year or more plus the current portion of longterm debt debt that matures in less than a year. These totals can be found in the longterm liabilities and current liabilities sections of the balance sheet. Also read Hard Skills and Soft Skills that Accountants Must Have Case Example in Calculating Debt to EBITDA Ratio debt to ebitda.