GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Severfield PLC (LSE:SFR) » Definitions » Debt-to-EBITDA

Severfield (LSE:SFR) Debt-to-EBITDA : 1.10 (As of Sep. 2023)


View and export this data going back to 1988. Start your Free Trial

What is Severfield Debt-to-EBITDA?

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

Severfield's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was £11.2 Mil. Severfield's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was £33.0 Mil. Severfield's annualized EBITDA for the quarter that ended in Sep. 2023 was £40.0 Mil. Severfield's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 was 1.10.

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

LSE:SFR' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0   Med: 0.33   Max: 1.73
Current: 0.92

During the past 13 years, the highest Debt-to-EBITDA Ratio of Severfield was 1.73. The lowest was 0.00. And the median was 0.33.

LSE:SFR's Debt-to-EBITDA is ranked better than
72.8% of 1309 companies
in the Construction industry
Industry Median: 2.32 vs LSE:SFR: 0.92

Severfield Debt-to-EBITDA Historical Data

The historical data trend for Severfield'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.

Severfield Debt-to-EBITDA Chart

Severfield Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 1.16 1.02 0.87 0.55

Severfield Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.02 0.63 0.73 0.40 1.10

Competitive Comparison of Severfield's Debt-to-EBITDA

For the Engineering & Construction subindustry, Severfield'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.


Severfield's Debt-to-EBITDA Distribution in the Construction Industry

For the Construction industry and Industrials sector, Severfield's Debt-to-EBITDA distribution charts can be found below:

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



Severfield Debt-to-EBITDA Calculation

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

Severfield's Debt-to-EBITDA for the fiscal year that ended in Mar. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(6.322 + 16.024) / 40.951
=0.55

Severfield's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(11.197 + 32.976) / 40.024
=1.10

* 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 (Sep. 2023) EBITDA data.


Severfield  (LSE:SFR) 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.


Severfield Debt-to-EBITDA Related Terms

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


Severfield (LSE:SFR) Business Description

Traded in Other Exchanges
Address
Severs House, Dalton Airfield Industrial Estate, Dalton, Thirsk, North Yorkshire, GBR, YO7 3JN
Severfield PLC is a construction company in the United Kingdom. It is one of the largest structural steel businesses in the UK. It derives its revenues from the provision of services like design, fabrication, and erection of structural steelwork, claddings, and ancillary products predominantly in the United Kingdom and the rest from the Republic of Ireland and continental Europe. The company's projects comprise of bridges, car parks, city center and retail, hotels, health, education, and power sectors.

Severfield (LSE:SFR) Headlines

From GuruFocus

Third Avenue Adds to Portfolio-Leading Stake in Weyerhaeuer

By David Goodloe David Goodloe 12-30-2014

Weekly 3-Year Low Highlights: SWAY, CBPX, IBP, BTH, GMAN

By Jimmy Xiao gurujx 06-23-2014