Private Equity & Exit OppsEasy

Define the two ratio families lenders quote constantly in LBOs: leverage ratios and coverage ratios.

Model answer

Leverage ratios measure the SIZE of the debt burden relative to earnings: total debt / EBITDA and net debt / EBITDA (net of cash), often split into senior leverage (senior debt / EBITDA) and total…

The full, human-reviewed answer is in the bank.

Sign up free and Daily 10 serves you 10 questions a day from all 2,000+ — or go Pro for unlimited reps.

More from Private Equity & Exit Opps

Browse all topics