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Davis Commodities (Davis Commodities) Debt-to-EBITDA : 0.18 (As of Jun. 2023)


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What is Davis Commodities Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

Davis Commodities's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2023 was $0.2 Mil. Davis Commodities's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2023 was $0.6 Mil. Davis Commodities's annualized EBITDA for the quarter that ended in Jun. 2023 was $4.8 Mil. Davis Commodities's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2023 was 0.18.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Davis Commodities's Debt-to-EBITDA or its related term are showing as below:

DTCK' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.05   Med: 1.81   Max: 3.56
Current: 0.13

During the past 2 years, the highest Debt-to-EBITDA Ratio of Davis Commodities was 3.56. The lowest was 0.05. And the median was 1.81.

DTCK's Debt-to-EBITDA is ranked better than
90.74% of 1426 companies
in the Consumer Packaged Goods industry
Industry Median: 2.13 vs DTCK: 0.13

Davis Commodities Debt-to-EBITDA Historical Data

The historical data trend for Davis Commodities's Debt-to-EBITDA can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Davis Commodities Debt-to-EBITDA Chart

Davis Commodities Annual Data
Trend Dec20 Dec21
Debt-to-EBITDA
3.56 0.05

Davis Commodities Semi-Annual Data
Dec20 Jun21 Dec21 Jun22 Dec22 Jun23
Debt-to-EBITDA Get a 7-Day Free Trial - 0.04 0.28 0.08 0.18

Competitive Comparison of Davis Commodities's Debt-to-EBITDA

For the Farm Products subindustry, Davis Commodities's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Davis Commodities's Debt-to-EBITDA Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Davis Commodities's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Davis Commodities's Debt-to-EBITDA falls into.



Davis Commodities Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Davis Commodities's Debt-to-EBITDA for the fiscal year that ended in Dec. 2021 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0.085 + 0.209) / 5.703
=0.05

Davis Commodities's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0.232 + 0.62) / 4.76
=0.18

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is two times the quarterly (Jun. 2023) EBITDA data.


Davis Commodities  (NAS:DTCK) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Davis Commodities Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Davis Commodities's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.


Davis Commodities (Davis Commodities) Business Description

Traded in Other Exchanges
N/A
Address
10 Bukit Batok Crescent, No. 10-01, The Spire, Singapore, SGP, 658079
Website
Davis Commodities Ltd is an agricultural commodity trading company based in Singapore which specializes in trading of three main categories of agricultural commodities namely sugar, rice, and oil and fat products. It distributes agricultural commodities to various markets, including Asia, Africa and the Middle East. The company also provides customers of commodity offerings with complementary, ancillary services such as warehouse handling and storage and logistics services.