Light SA is a Brazilian public-private utility and the state energy company, CEMIG, holds a controlling interest. Headquartered in Rio de Janeiro, Light primarily generates, distributes and sells energy. To this end, the company owns and operates a portfolio of hydroelectric plants serving the Brazilian state of Rio de Janeiro. Most of Light's revenue comes from providing energy, using the grid and building resources, which also generates substantial revenue. The vast majority of the company's clients are residential consumers. Larger business clients are the second group.
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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