Nestle Nigeria (NSA:NSTL) Debt-to-EBITDA : -2.88 (As of Dec. 2023)

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What is Nestle Nigeria Debt-to-EBITDA?

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

Nestle Nigeria's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was ₦37,371 Mil. Nestle Nigeria's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was ₦365,128 Mil. Nestle Nigeria's annualized EBITDA for the quarter that ended in Dec. 2023 was ₦-139,590 Mil. Nestle Nigeria's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was -2.88.

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

NSA:NSTL' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -7.47 Med: 0.68 Max: 5.68
Current: 5.68

During the past 13 years, the highest Debt-to-EBITDA Ratio of Nestle Nigeria was 5.68. The lowest was -7.47. And the median was 0.68.

NSA:NSTL's Debt-to-EBITDA is ranked worse than
79.23% of 1425 companies
in the Consumer Packaged Goods industry
Industry Median: 2.13 vs NSA:NSTL: 5.68

Nestle Nigeria Debt-to-EBITDA Historical Data

The historical data trend for Nestle Nigeria'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.

Nestle Nigeria Debt-to-EBITDA Chart

Nestle Nigeria Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

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0.16

0.58

1.00

1.65

-7.47

Nestle Nigeria Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial															1.80	1.29	1.98	2.33	-2.88

Competitive Comparison of Nestle Nigeria's Debt-to-EBITDA

For the Packaged Foods subindustry, Nestle Nigeria'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.

Nestle Nigeria's Debt-to-EBITDA Distribution in the Consumer Packaged Goods Industry

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

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

Nestle Nigeria Debt-to-EBITDA Calculation

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

Nestle Nigeria'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
	=	(37371.366	+	365127.523)	/	-53920.964
	=	-7.46

Nestle Nigeria's annualized Debt-to-EBITDA for the quarter 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
	=	(37371.366	+	365127.523)	/	-139590.416
	=	-2.88

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 (Dec. 2023) EBITDA data.

Nestle Nigeria (NSA:NSTL) 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.

Nestle Nigeria Debt-to-EBITDA Related Terms

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

Nestle Nigeria (NSA:NSTL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Nestle Nigeria PLC (NSA:NSTL) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

N/A

Address

22-24, Industrial Avenue, Ilupeju, Lagos, Ikeja, NGA, P.M.B. 21164

Website

https://www.nestle-cwa.com

Nestle Nigeria PLC is a food and beverage company. It is involved in the business of manufacturing, marketing, and distribution of food products. The firm has categorized its products into Baby foods, Coffee, Culinary, Dairy, Drinks, and Recipes. It develops and markets its products under brands such as Cerelac, Nescafe, Nido, Maggi, Milo, etc. The company has Food and Beverage reportable segments. The food segment engaged in the production and sale of Maggi, Cerelac, SMA, Nan, Lactogen, and Golden Morn. The beverages segment consists of the production and sale of Milo, Chocomilo, Nido, Nescafe, Milo ready-to-drink, and Nestle Pure Life. The food segment generates the majority of the revenue. The majority of the revenue is generated from Nigeria.

Nestle Nigeria (NSA:NSTL) Headlines

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