Companhia de Saneamento de Minas Gerais (Copasa) is a mixed-capital company controlled by the State of Minas Gerais, which acts as a utility in the basic sanitation sector. Its business model is based on the provision of public water supply and sewage services, operating through concession contracts signed with hundreds of municipalities in Minas Gerais. The company's operations are mainly divided between water, which constitutes its largest source of revenue, and wastewater. In addition, Copasa works on a smaller scale in urban solid waste management. The company operates in the state of Minas Gerais, where it serves a large population with its services
How many years of EBITDA are required to pay off the company's net debt considering the lease agreements, according to the official accounting standard IFRS16. As a market consensus, a value of up to 3 years of leverage is accepted for most companies.
How much the company's debt represents in % in relation to its equity. As a market consensus, a value less than or equal to 1 is accepted, above that leverage can end up hurting the final result at some point.
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