S&P Global Ratings

S&P Global Ratings

'Fake EBITDA' masks risk in debt-laden companies

Now, amid rising interest rates, persistent inflation and warnings of a potential recession on the horizon, research from S&P Global Ratings is underscoring just how far from reality the earnings projections are proving to be.

As debt-laden companies continue to rely on inflated EBITDA figures to paint a rosier financial picture, investors are being urged to exercise caution and look beyond the numbers. S&P Global Ratings is shining a light on the risks associated with this practice, highlighting the need for greater transparency and accuracy in financial reporting.