Mercury NZ (Mercury NZ) Debt-to-EBITDA : 12.65 (As of Jun. 2023)

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What is Mercury NZ Debt-to-EBITDA?

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

Mercury NZ's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2023 was $230 Mil. Mercury NZ's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2023 was $934 Mil. Mercury NZ's annualized EBITDA for the quarter that ended in Jun. 2023 was $92 Mil. Mercury NZ's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2023 was 12.65.

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

MGHTF' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.74 Med: 2.31 Max: 3.34
Current: 3.22

During the past 11 years, the highest Debt-to-EBITDA Ratio of Mercury NZ was 3.34. The lowest was 1.74. And the median was 2.31.

MGHTF's Debt-to-EBITDA is ranked better than
61.18% of 322 companies
in the Utilities - Independent Power Producers industry
Industry Median: 4.41 vs MGHTF: 3.22

Mercury NZ Debt-to-EBITDA Historical Data

The historical data trend for Mercury NZ'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.

Mercury NZ Debt-to-EBITDA Chart

Mercury NZ Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Debt-to-EBITDA

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1.74

2.51

3.34

2.27

3.22

Mercury NZ Semi-Annual Data
	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23
Debt-to-EBITDA	Get a 7-Day Free Trial															5.04	1.35	4.01	1.77	12.65

Competitive Comparison of Mercury NZ's Debt-to-EBITDA

For the Utilities - Renewable subindustry, Mercury NZ'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.

Mercury NZ's Debt-to-EBITDA Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Mercury NZ's Debt-to-EBITDA distribution charts can be found below:

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

Mercury NZ Debt-to-EBITDA Calculation

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

Mercury NZ's Debt-to-EBITDA for the fiscal year 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
	=	(230.061	+	934.356)	/	361.35
	=	3.22

Mercury NZ'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
	=	(230.061	+	934.356)	/	92.024
	=	12.65

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.

Mercury NZ (OTCPK:MGHTF) 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.

Mercury NZ Debt-to-EBITDA Related Terms

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

Mercury NZ (Mercury NZ) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Mercury NZ Ltd (OTCPK:MGHTF) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

MCY:New Zealand MRY:Germany MCY:Australia

Address

33 Broadway, The Mercury Building, P O Box 90399, Newmarket, Auckland, NTL, NZL, 1142

Website

https://www.mercury.co.nz

Mercury NZ (formerly Mighty River Power) generates more than 15% of New Zealand's electricity and is one of the four major electricity generators and suppliers in the country. All electricity is generated from renewable sources, which makes it one of the lowest-cost providers of electricity. The company operates nine hydro stations and five geothermal power plants in the North Island and some wind farms. Mercury sells electricity to residential and commercial customers and has the largest share of the key Auckland market.

Mercury NZ (Mercury NZ) Headlines

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