What is the "Leverage Ratio"?
Posted: Sun May 08, 2022 1:22 pm
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.
A leverage ratio under 2.0 is OK, under 1.5 is GOOD and under 1.0 is EXCELLENT.