Legg Mason (Legg Mason) Debt-to-EBITDA : 5.49 (As of Jun. 2020)

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What is Legg Mason Debt-to-EBITDA?

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

Legg Mason's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2020 was $327 Mil. Legg Mason's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2020 was $2,242 Mil. Legg Mason's annualized EBITDA for the quarter that ended in Jun. 2020 was $468 Mil. Legg Mason's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2020 was 5.49.

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 Legg Mason's Debt-to-EBITDA or its related term are showing as below:

LM' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -3.76 Med: 3.68 Max: 21.32
Current: 4.37

During the past 13 years, the highest Debt-to-EBITDA Ratio of Legg Mason was 21.32. The lowest was -3.76. And the median was 3.68.

LM's Debt-to-EBITDA is not ranked
in the Asset Management industry.
Industry Median: 1.22 vs LM: 4.37

Legg Mason Debt-to-EBITDA Historical Data

The historical data trend for Legg Mason'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.

Legg Mason Debt-to-EBITDA Chart

Legg Mason Annual Data

Trend

Mar11

Mar12

Mar13

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Debt-to-EBITDA

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21.32

3.94

5.53

10.16

3.96

Legg Mason Quarterly Data
	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20
Debt-to-EBITDA	Get a 7-Day Free Trial															5.25	3.94	3.44	4.03	5.49

Competitive Comparison of Legg Mason's Debt-to-EBITDA

For the Asset Management subindustry, Legg Mason'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.

Legg Mason's Debt-to-EBITDA Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Legg Mason's Debt-to-EBITDA distribution charts can be found below:

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

Legg Mason Debt-to-EBITDA Calculation

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

Legg Mason's Debt-to-EBITDA for the fiscal year that ended in Mar. 2020 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(77.814	+	2251.47)	/	587.782
	=	3.96

Legg Mason's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2020 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(327.191	+	2242.095)	/	468.132
	=	5.49

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 (Jun. 2020) EBITDA data.

Legg Mason (NYSE:LM) 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.

Legg Mason Debt-to-EBITDA Related Terms

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

Legg Mason (Legg Mason) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Legg Mason Inc (NYSE:LM) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

N/A

Address

100 International Drive, Baltimore, MD, USA, 21202-1099

Website

https://www.leggmason.com

Legg Mason provides investment management services for institutional and individual investors. The firm had $783.4 billion in managed assets at the end of June, spread among its equity (25% of total AUM), fixed-income (57%), alternatives (9%), and money market (9%) investment platforms. Legg Mason uses a multiaffiliate business model, with its single- largest affiliate, Western Asset Management, accounting for more than 60% of managed assets. Other major affiliates include ClearBridge Investments (more than 15% of AUM), Brandywine (less than 10%), and Clarion Partners (less than 10%). The remaining affiliates--Martin Currie, Royce & Associates, EnTrustPermal, QS Investors, and RARE Infrastructure--each account for 2% or less of Legg Mason's managed assets.