Liabilities Repayment Period = Total Short-Term Liabilities / Earnings before Taxes, Interest & Depreciation (EBITDA)
Identifies the time required to fully repay existing Short-Term Liabilities based on the projected operating efficiency of the business.
Business actions to improve the Index
- Increase Earnings before Taxes, Interest & Depreciation, Increase Sales, Reduce Costs, Reduce Expenses
- Reduce Total Short-Term Liabilities through repayment and reduce Cash, either through Restructuring Debt in favor of Long-Term
