A company had total revenues of $79 million, operating margin of 29.4%, and depreciation and amortization expense of $11 million over the trailing twelve months. The company currently has $245 million in total debt and $90 million in cash and cash equivalents. The company's shares are currently trading at $30.6 per share and there are 17 million shares outstanding. What is its EV/EBITDA ratio? Round to one decimal place. Hint: Equity value = Market capitalization = price x number of shares outstanding
Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
QUESTION 2
A company had total revenues of $79 million, operating margin of 29.4%, and
Hint: Equity value = Market capitalization = price x number of shares outstanding
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