You have been asked to calculate credit ratios for two companies, Big Co. and Bigger Inc. Big Co. had EBITDA of $100 million last year and Debt of $400 million at the end of the year. Bigger Inc. had EBITDA of $250 million last year and Debt of $750 million. Both are in the same industry. What is the ratio of Debt to EBITDA for Big Co.? Express your answer to the nearest tenth.

Answer rating: 100% (QA)

To calculate the Debt to EBITDA ratio for Big Co use the following for... View the full answer