EBITDA is relevant because it would appear that their banking covenant is written as a multiple of DEBT over EBITDA... that might be silly, wrong or disagreeable - I have no opinion on it - but thats what it seems to be.
What it isnt is DEBT over NPAT ... or any other indicator!
If DEBT / EBITDA >= 4.5 then the banks move in... out with the red pen.
DEBT = 42bn
... therefore if EBITDA <= 9.3bn ...out with the red pen... banks move in.
Hence the supreme relevance of EBITDA to RIO.
$5 within a month, page-20
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Last
$118.14 |
Change
-2.855(2.36%) |
Mkt cap ! $43.54B | |||
| Open | High | Low | Value | Volume |
| $119.62 | $120.11 | $116.68 | $224.3M | 1.893M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 1095 | $129.94 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $112.23 | 51288 | 11 |
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| Last trade - 15.59pm 09/10/2024 (20 minute delay) ? |
| RIO (ASX) Chart |