What do you mean by mild I H B R D?

In the field of finance, "MILD I H B R D" stands for "Modified Internal Hybrid Ratio of Debt.” It refers to a financial ratio that measures a company's ability to service its debt obligations, taking into account both interest and principal payments.

Formula:

The formula for calculating the Modified Internal Hybrid Ratio of Debt (MILD I H B R D) is as follows:

MILD I H B R D = (EBITDA + Depreciation & Amortization) / (Interest Expense + Principal Repayments)

Where:

* EBITDA: Earnings before interest, taxes, depreciation, and amortization

* Depreciation & Amortization: Non-cash expenses related to the wear and tear of assets and the amortization of intangible assets

* Interest Expense: The cost of borrowing money, typically paid to lenders

* Principal Repayments: The portion of debt that is paid back to lenders over time

Interpretation:

The MILD I H B R D ratio indicates how many times a company can cover its interest and principal payments from its operating cash flow (EBITDA plus depreciation and amortization). A higher ratio suggests that a company has more financial flexibility and a stronger debt servicing capacity, while a lower ratio may indicate a higher risk of default.

Generally, a MILD I H B R D ratio above 1 is considered healthy, as it suggests that the company can comfortably meet its debt obligations. However, the specific threshold for a satisfactory ratio can vary depending on the industry, company size, and risk tolerance of lenders and investors.

It's worth noting that the MILD I H B R D ratio is just one of many financial metrics used to assess a company's debt servicing ability. Other relevant ratios may include the debt-to-equity ratio, interest coverage ratio, and cash flow from operations to total debt ratio.