Alphabet Net debt/EBITDA
What is the Net debt/EBITDA of Alphabet?
The Net debt/EBITDA of Alphabet Inc. is -4.78
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 Miscellaneous sector on LSE compared to Alphabet
What does Alphabet do?
Alphabet Inc. provides various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment offers products and services, including ads, Android, Chrome, hardware, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube. It is also involved in the sale of apps and in-app purchases and digital content in the Google Play store; and Fitbit wearable devices, Google Nest home products, Pixel phones, and other devices, as well as in the provision of YouTube non-advertising services. The Google Cloud segment offers infrastructure, platform, and other services; Google Workspace that include cloud-based collaboration tools for enterprises, such as Gmail, Docs, Drive, Calendar, and Meet; and other services for enterprise customers. The Other Bets segment sells health technology and internet services. The company was founded in 1998 and is headquartered in Mountain View, California.
Companies with net debt/ebitda similar to Alphabet
- NIIT Technologies has Net debt/EBITDA of -4.80
- NIIT Technologies has Net debt/EBITDA of -4.80
- Gérard Perrier Industrie SA has Net debt/EBITDA of -4.80
- Solutions 30 SE has Net debt/EBITDA of -4.80
- Speciality Metals International has Net debt/EBITDA of -4.79
- Onxeo SA has Net debt/EBITDA of -4.78
- Alphabet has Net debt/EBITDA of -4.78
- Software Aktiengesellschaft has Net debt/EBITDA of -4.78
- HCI Inc has Net debt/EBITDA of -4.78
- Jericho Oil has Net debt/EBITDA of -4.77
- Nova Royalty has Net debt/EBITDA of -4.76
- Dynavax Technologies has Net debt/EBITDA of -4.76
- FLYHT Aerospace Solutions has Net debt/EBITDA of -4.76