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My Foodie Box Ltd Net debt/EBITDA

What is the Net debt/EBITDA of My Foodie Box Ltd?

The Net debt/EBITDA of My Foodie Box Ltd is 0.94

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 Consumer Staples sector on ASX compared to My Foodie Box Ltd

What does My Foodie Box Ltd do?

My Foodie Box Limited prepares and delivers meal kits in Western Australia. It also operates a subscription based e-commerce platform. The company was incorporated in 2017 and is based in Maylands, Australia.

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