Ali Alghanim Sons Automotive Co KSC (KUW:ALG) Debt-to-EBITDA : 0.89 (As of Mar. 2024)

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What is Ali Alghanim Sons Automotive Co KSC Debt-to-EBITDA?

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

Ali Alghanim Sons Automotive Co KSC's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was KWD3.4 Mil. Ali Alghanim Sons Automotive Co KSC's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was KWD33.3 Mil. Ali Alghanim Sons Automotive Co KSC's annualized EBITDA for the quarter that ended in Mar. 2024 was KWD41.2 Mil. Ali Alghanim Sons Automotive Co KSC's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 was 0.89.

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 Ali Alghanim Sons Automotive Co KSC's Debt-to-EBITDA or its related term are showing as below:

KUW:ALG' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.74 Med: 0.9 Max: 1.05
Current: 0.79

During the past 3 years, the highest Debt-to-EBITDA Ratio of Ali Alghanim Sons Automotive Co KSC was 1.05. The lowest was 0.74. And the median was 0.90.

KUW:ALG's Debt-to-EBITDA is ranked better than
76.88% of 1051 companies
in the Vehicles & Parts industry
Industry Median: 2.39 vs KUW:ALG: 0.79

Ali Alghanim Sons Automotive Co KSC Debt-to-EBITDA Historical Data

The historical data trend for Ali Alghanim Sons Automotive Co KSC'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.

Ali Alghanim Sons Automotive Co KSC Debt-to-EBITDA Chart

Ali Alghanim Sons Automotive Co KSC Annual Data

Trend

Dec21

Dec22

Dec23

Debt-to-EBITDA

1.05

0.74

0.90

Ali Alghanim Sons Automotive Co KSC Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Debt-to-EBITDA	Get a 7-Day Free Trial							0.67	0.64	0.93	0.85	0.89

Competitive Comparison of Ali Alghanim Sons Automotive Co KSC's Debt-to-EBITDA

For the Auto & Truck Dealerships subindustry, Ali Alghanim Sons Automotive Co KSC'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.

Ali Alghanim Sons Automotive Co KSC's Debt-to-EBITDA Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Ali Alghanim Sons Automotive Co KSC's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Ali Alghanim Sons Automotive Co KSC's Debt-to-EBITDA falls into.

Ali Alghanim Sons Automotive Co KSC Debt-to-EBITDA Calculation

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

Ali Alghanim Sons Automotive Co KSC's Debt-to-EBITDA for the fiscal year that ended in Dec. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(6.635	+	34.101)	/	45.471
	=	0.90

Ali Alghanim Sons Automotive Co KSC's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(3.369	+	33.324)	/	41.24
	=	0.89

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 four times the quarterly (Mar. 2024) EBITDA data.

Ali Alghanim Sons Automotive Co KSC (KUW:ALG) 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.

Ali Alghanim Sons Automotive Co KSC Debt-to-EBITDA Related Terms

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Ali Alghanim Sons Automotive Co KSC (KUW:ALG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Ali Alghanim Sons Automotive Co KSC (KUW:ALG) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

N/A

Address

Airport Road 55, P.O. Box 21540, Safat, Opposite Kaifan Telecommunication, Shuwaikh, KWT, 13076

Website

https://alg.com.kw

Ali Alghanim Sons Automotive Co KSC is engaged in the automotive business. The Primary Activities of the Company are selling and purchasing cars and spare parts, importing and exporting light and heavy vehicles and cars, renting cars, maintaining light & heavy vehicles and cars, trading auto spare parts, and renting equipment and their maintenance. The Group is divided into four main geographical segments which are the State of Kuwait, Iraq, Egypt and the United Arab Emirates. The majority is derived from Kuwait.