What is the "Leverage Ratio"?

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dan_s
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Joined: Fri Apr 23, 2010 8:22 am

What is the "Leverage Ratio"?

Post by dan_s »

Leverage ratio is calculated by dividing Net debt by Earning before interest, income taxes and DD&A (EBITDAX).

A leverage ratio under 2.0 is OK, under 1.5 is GOOD and under 1.0 is EXCELLENT.
Dan Steffens
Energy Prospectus Group
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