Calculate Debt to EBITDA Automatically in Excel in Under 5 Minutes with 3 Simple Steps

Debt to EBITDA is a measure of a company’s ability to pay off its incurred debt. It is calculated by pulling the total debt for a company and then dividing that number by the company’s EBITDA. In order to determine a company’s EBITDA, you will need to complete a few calculations…if you’re pulling the ratio by hand that is, but, using our hack and Excel Add-In, you can pull the ratio in a matter of seconds!

In this short process, we’ll show you how to pull the Debt to EBITDA ratio for US publicly traded companies without doing manual calculations, which is possible through the Intrinio Excel Add-In.

Getting Started

Before you can pull Debt to EBITDA, you will need to follow the following steps:

  1. Create a free Intrinio account by signing up here.
  2. Take a trial, or subscribe, to either/or both of the following Intrinio data feeds: US Fundamentals or US Sector and Industry.
  3. Download and install the free Excel Add-In. For help with downloading/installing the add-in, check out the Excel Tutorial.

 

Calculating Debt to EBITDA

Now, in just three steps, you will be able to pull the Debt to EBITDA ratio using the API Explorer and the Excel Add-In.

  1. Go to the Debt to EBITDA data tag page
  2. Scroll down to the API Explorer and copy the formula by clicking the notepad icon Debt to EBITDA data tag
  3. Paste the function into the excel sheet, change the company ticker to the cell in which the ticker is written, for instance, on the example below, “AAPL” was changed to be A2. This will allow you to update a whole list of tickers without manually changing the ticker on each formula.debt to EBITDA formula

 

How is Debt to EBITDA Calculated?

If you're interested in the process behind our Excel formula, the following steps will show you how to calculate it manually.

The Debt to EBITDA ratio is calculated from a company’s total debt and EBITDA.

debt to EBITDA formula2

To determine a company’s total debt, you would utilize the following formula:

debt calculation

To determine a company’s EBITDA, you would utilize the following formulas, in this order:

  1. Calculate the EBIT like so:EBIT calculation
  2. Then, taking the EBIT from that calculation, calculate EBITDA like so:EBITDA calculation

 

Interested in learning more?

If you'd like to learn how to calculate historical Debt to EBITDA ratios, be sure to check out our video tutorial (and many others) on our YouTube channel!