Southern Net debt/EBITDA
What is the Net debt/EBITDA of Southern?
The Net debt/EBITDA of Southern Company is 21.59
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 NYSE compared to Southern
What does Southern do?
Southern Company is an American gas and electric utility holding company based in the southern United States. It is headquartered in Atlanta, Georgia, with executive offices also located in Birmingham, Alabama. The company is the second largest utility company in the U.S. in terms of customer base, as of 2021.
Companies with net debt/ebitda similar to Southern
- AgroFresh Solutions Inc has Net debt/EBITDA of 21.53
- American Water Works Co has Net debt/EBITDA of 21.55
- Wallbridge Mining Co has Net debt/EBITDA of 21.56
- Boozt AB has Net debt/EBITDA of 21.57
- Wereldhave Belgium SCA has Net debt/EBITDA of 21.58
- King George has Net debt/EBITDA of 21.58
- Southern has Net debt/EBITDA of 21.59
- STAG Industrial Inc has Net debt/EBITDA of 21.60
- Applegreen plc has Net debt/EBITDA of 21.61
- Starbreeze AB (publ) has Net debt/EBITDA of 21.62
- CGN Power Co has Net debt/EBITDA of 21.63
- Stenprop has Net debt/EBITDA of 21.64
- Africa has Net debt/EBITDA of 21.64