EBITDA/Total Capital

EBITDA/Total Capital is a measure of company’s profitability. It is calculated as EBITDA divided by Total Capital.

This ratio shows that return expressed as EBITDA company gets per dollar of Total Capital (sum of Shareholders Equity and Total Debt). This measure is similar to Return on сommon equity, but it may be more comprehensive since it takes onto account capital structure of a company.

Generally, the higher this ratio the better.

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