Power Assets Net debt/EBITDA
What is the Net debt/EBITDA of Power Assets?
The Net debt/EBITDA of Power Assets Holdings Limited is -4.42
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 Utilities sector on HKSE compared to Power Assets
What does Power Assets do?
Power Assets Holdings Limited, an investment holding company, generates, transmits, and distributes electricity in Hong Kong, the United Kingdom, Australia, Mainland China, and internationally. The company generates energy from thermal, renewable energy, and waste sources. It also distributes gas; transmits oil; holds property and deposits; and provides consulting, investing, trust administration, and management services. The company has a generation capacity of 1,004 MW renewable energy/energy from waste, 4,754 MW gas fired, and 4,216 MW coal/oil fired; and operates 114,000 km of gas/oil pipeline, as well as 400,700 km of power network serving 19,192,000 customers. The company was formerly known as Hongkong Electric Holdings Limited and changed its name to Power Assets Holdings Limited in February 2011. Power Assets Holdings Limited was founded in 1889 and is based in Central, Hong Kong.
Companies with net debt/ebitda similar to Power Assets
- Scout Security has Net debt/EBITDA of -4.43
- Xebec Adsorption has Net debt/EBITDA of -4.43
- Fidelity Retirement Master Trust-Fidelity SaveEasy 2020 Fund has Net debt/EBITDA of -4.43
- ANTA Sports Products has Net debt/EBITDA of -4.43
- Resolute Mining has Net debt/EBITDA of -4.43
- Anthem has Net debt/EBITDA of -4.42
- Power Assets has Net debt/EBITDA of -4.42
- Northrim has Net debt/EBITDA of -4.41
- Under Armour has Net debt/EBITDA of -4.41
- Bénéteau SA has Net debt/EBITDA of -4.41
- Brooks Automation has Net debt/EBITDA of -4.40
- Miliboo SA has Net debt/EBITDA of -4.40
- Dynacor Gold Mines has Net debt/EBITDA of -4.40