Unit Net debt/EBITDA
What is the Net debt/EBITDA of Unit?
The Net debt/EBITDA of Unit Corp. is 11.82
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 Energy sector on NYSE compared to Unit
What does Unit do?
Unit Corp. engages in oil and gas exploration, production, contract drilling, and natural gas gathering and processing. It operates through the following segments: Oil and Natural Gas; Contract Drilling; Mid-Stream; and Other. The Oil and Natural Gas segment explores, develops, acquires, and produces oil and natural gas properties. The Contract Drilling segment contracts to drill onshore oil and natural gas wells. The Mid-Stream segment buys, sells, gathers, processes, and treats natural gas. The company was founded by King P. Kirchner and James Donald Bodard in 1963 and is headquartered in Tulsa, OK.
Companies with net debt/ebitda similar to Unit
- Primo Water has Net debt/EBITDA of 11.79
- Agora has Net debt/EBITDA of 11.79
- Guangshen Railway has Net debt/EBITDA of 11.81
- Victoria's Secret & Co has Net debt/EBITDA of 11.81
- Auris Minerals has Net debt/EBITDA of 11.81
- MyoKardia has Net debt/EBITDA of 11.82
- Unit has Net debt/EBITDA of 11.82
- Verimatrix Societe anonyme has Net debt/EBITDA of 11.82
- Match has Net debt/EBITDA of 11.83
- Coloplast A/S has Net debt/EBITDA of 11.83
- Genesis has Net debt/EBITDA of 11.83
- Black Cat Syndicate has Net debt/EBITDA of 11.83
- CI Resources has Net debt/EBITDA of 11.83