Calculates the gross debt to EBITDA ratio, which measures the total (gross) debt of the company relative to its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).

This differs from the Net-Debt to EBITDA Ratio in that it uses total (gross) debt rather than net debt (total debt minus cash and cash equivalents). Gross debt to EBITDA is a more conservative leverage measure since it does not assume that a company’s cash balance would actually be used to pay down debt, which matters when comparing companies with restricted cash, cash earmarked for other purposes, or when assessing gross refinancing risk rather than net economic leverage.

The formula is as follows:

\[\text{Gross Debt to EBITDA Ratio} = \text{Total Debt} / \text{EBITDA}\]

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Calculate the Gross Debt to EBITDA Ratio in Python

The Gross Debt to EBITDA Ratio is available in the Ratios module of the open-source Finance Toolkit. Install it with:

pip install financetoolkit -U

Then call get_gross_debt_to_ebitda_ratio as shown below.

from financetoolkit import Toolkit

toolkit = Toolkit(["AAPL", "TSLA"], api_key="FINANCIAL_MODELING_PREP_KEY")

gross_debt_to_ebitda_ratios = toolkit.ratios.get_gross_debt_to_ebitda_ratio()

Parameters

get_gross_debt_to_ebitda_ratio accepts the following parameters:

  • rounding (int, optional): The number of decimals to round the results to. Defaults to 4.
  • growth (bool, optional): Whether to calculate the growth of the ratios. Defaults to False.
  • lag (int | str, optional): The lag to use for the growth calculation. Defaults to 1.
  • standardize (bool, optional): Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False.
  • trailing (int): Defines whether to select a trailing period. E.g. when selecting 4 with quarterly data, the TTM is calculated.
Interest Coverage Ratio Equity Multiplier Debt Service Coverage Ratio Free Cash Flow Yield Net Debt to EBITDA Ratio Cash Flow Coverage Ratio CAPEX Coverage Ratio CAPEX Dividend Coverage Ratio Debt to Capital Ratio Preferred Dividend Coverage Ratio Interest Paid to Interest Expense Ratio Asset Coverage Ratio

The Ratios module page introduces the module, and the sidebar lists all of its functions.

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