Net debt to EBITDA is a financial ratio that measures a company's ability to pay off its debt using its earnings before interest, taxes, depreciation, and amortization (EBITDA). This ratio provides insight into a company's leverage and its capacity to service its debt obligations.

Net debt to EBITDA = Net debt / EBITDA

For quarterly values, the trailing twelve months (TTM) EBITDA is used in the denominator to provide a more comprehensive view of the company's earnings over the past year.

It's important to note that if the EBITDA value is negative, the calculation of Net Debt to EBITDA is not possible. A negative EBITDA indicates that the company's earnings are insufficient to cover its interest, taxes, depreciation, and amortization expenses, making it challenging to assess the company's debt repayment capacity using this ratio.

Investors use the Net debt to EBITDA ratio to evaluate a company's financial health, debt levels, and ability to manage its debt obligations. A lower ratio indicates lower debt relative to earnings, which may suggest a stronger financial position, while a higher ratio may indicate higher leverage and potential financial risk.