The Net debt/EBITDA of InVivo Therapeutics Holdings Corp is 2.57
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.
about invivo therapeutics invivo therapeutics holdings corp. is a research and clinical-stage biomaterials and biotechnology company with a focus on treatment of spinal cord injuries. the company was founded in 2005 with proprietary technology co-invented by robert langer, sc.d., professor at massachusetts institute of technology, and joseph p. vacanti, m.d., who then was at boston children’s hospital and who now is affiliated with massachusetts general hospital. in 2011, the company earned the david s. apple award from the american spinal injury association for its outstanding contribution to spinal cord injury medicine. in 2015, the company’s investigational neuro-spinal scaffold received the 2015 becker’s healthcare spine device award. the publicly-traded company is headquartered in cambridge, ma. for more details, visit www.invivotherapeutics.com. about the neuro-spinal scaffold™ following acute spinal cord injury, surgical implantation of the biodegradable neuro-spinal scaffold wi