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Vroom (VRM) Debt-to-EBITDA : -12.86 (As of Mar. 2024)


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What is Vroom Debt-to-EBITDA?

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

Vroom's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $516.3 Mil. Vroom's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $558.0 Mil. Vroom's annualized EBITDA for the quarter that ended in Mar. 2024 was $-83.5 Mil. Vroom's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 was -12.86.

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

VRM' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -4.49   Med: -2.18   Max: -1.42
Current: -4.49

During the past 6 years, the highest Debt-to-EBITDA Ratio of Vroom was -1.42. The lowest was -4.49. And the median was -2.18.

VRM's Debt-to-EBITDA is ranked worse than
100% of 1051 companies
in the Vehicles & Parts industry
Industry Median: 2.39 vs VRM: -4.49

Vroom Debt-to-EBITDA Historical Data

The historical data trend for Vroom'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.

Vroom Debt-to-EBITDA Chart

Vroom Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Debt-to-EBITDA
Get a 7-Day Free Trial -1.42 -1.84 -3.40 -2.51 -4.47

Vroom Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 463.97 -6.50 -5.32 -2.66 -12.86

Competitive Comparison of Vroom's Debt-to-EBITDA

For the Auto & Truck Dealerships subindustry, Vroom'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.


Vroom's Debt-to-EBITDA Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Vroom's Debt-to-EBITDA distribution charts can be found below:

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



Vroom Debt-to-EBITDA Calculation

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

Vroom'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
=(753.593 + 479.356) / -276.004
=-4.47

Vroom'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
=(516.276 + 557.951) / -83.532
=-12.86

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


Vroom  (NAS:VRM) 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.


Vroom Debt-to-EBITDA Related Terms

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


Vroom (VRM) Business Description

Traded in Other Exchanges
Address
3600 West Sam Houston Parkway South, Floor 4, Houston, TX, USA, 77042
Vroom Inc is an end-to-end e-commerce platform for the used vehicle industry. The Company's scalable, data-driven technology brings all phases of the car buying and selling process to consumers offering an extensive selection of used vehicles, transparent pricing, competitive financing, and at-home pick-up and delivery. Its three reportable segments are: The E-commerce segment represents retail sales of used vehicles through its e-commerce platform and fees earned on sales of value-added products associated with those vehicle sales, The Wholesale segment represents sales of used vehicles through wholesale channels, and The Retail Financing segment represents UACC's operations with its network of third-party dealership customers.
Executives
Thomas H Shortt officer: Chief Operating Officer C/O VROOM INC, 1375 BROADWAY, 11TH FLOOR, NEW YORK NY 10018
Agnieszka Zakowicz officer: Principal Accounting Officer C/O VROOM, INC., 1375 BROADWAY, FLOOR 11, NEW YORK NY 10018
Robert R. Krakowiak officer: Chief Financial Officer 633 NATALIE LANE, NORTHVILLE MI 48167
Mylod Robert J Jr director
Patricia Moran officer: See remarks GREENHILL & CO., 300 PARK AVENUE, 17TH FLOOR, NEW YORK NY 10022
Carol Denise Stott officer: See remarks C/O VROOM, INC., 1375 BROADWAY, FLOOR 11, NEW YORK NY 10018
Laura W Lang director DIGITAS INC., 800 BOYLSTON STREET, BOSTON MA 02199
Timothy M Crow director 2455 PACES FERRY ROAD, NW, ATLANTA GA 30339
Paul J. Hennessy director, officer: Chief Executive Officer C/O SHUTTERSTOCK, INC., 350 FIFTH AVENUE, 21ST FLOOR, NEW YORK NY 10118
Catterton Management Company, L.l.c. director, 10 percent owner 599 WEST PUTNAM AVENUE, GREENWICH CT 06830
David K. Jones officer: Chief Financial Officer 1375 BROADWAY, FLOOR 11, NEW YORK NY 10018
Scott Arnold Dahnke director, 10 percent owner 599 WEST PUTNAM AVENUE, GREENWICH CT 06830
Cgp2 Lone Star, L.p. 10 percent owner 599 WEST PUTNAM AVENUE, GREENWICH CT 06930
Frederick Terrell director 17 STATE STREET, NEW YORK NY 10004
Paula B Pretlow director C/O CION ARES MANAGEMENT LLC, 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067