Overview
EBITDA to Short-term Debt, is a core indicator used to evaluate financial condition and operating performance. Quarterly (Q) scope increases short-term volatility visibility.
Formula
EBITDA (Trailing 12 Months) / Short-term Debt (latest period)
How to Interpret
High Value
A sustained high EBITDA to Short-term Debt can shift expectations around the firm’s cost of capital.
Low Value
If EBITDA to Short-term Debt remains depressed, investors may revise forward assumptions downward.
Where It Is Used
EBITDA to Short-term Debt should be paired with at least one complementary quality metric in decision filters.