Ashtead Group (Ashtead Group) Debt-to-EBITDA : 2.40 (As of Jan. 2024)

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What is Ashtead Group Debt-to-EBITDA?

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

Ashtead Group's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was $268 Mil. Ashtead Group's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was $10,920 Mil. Ashtead Group's annualized EBITDA for the quarter that ended in Jan. 2024 was $4,666 Mil. Ashtead Group's annualized Debt-to-EBITDA for the quarter that ended in Jan. 2024 was 2.40.

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

ASHTF' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.6 Med: 1.83 Max: 2.41
Current: 2.29

During the past 13 years, the highest Debt-to-EBITDA Ratio of Ashtead Group was 2.41. The lowest was 1.60. And the median was 1.83.

ASHTF's Debt-to-EBITDA is ranked worse than
55.61% of 829 companies
in the Business Services industry
Industry Median: 1.88 vs ASHTF: 2.29

Ashtead Group Debt-to-EBITDA Historical Data

The historical data trend for Ashtead Group'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.

Ashtead Group Debt-to-EBITDA Chart

Ashtead Group Annual Data

Trend

Apr14

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

Apr23

Debt-to-EBITDA

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1.79

2.41

1.93

2.02

2.04

Ashtead Group Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Debt-to-EBITDA	Get a 7-Day Free Trial															2.03	2.10	1.98	1.97	2.40

Competitive Comparison of Ashtead Group's Debt-to-EBITDA

For the Rental & Leasing Services subindustry, Ashtead Group'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.

Ashtead Group's Debt-to-EBITDA Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Ashtead Group's Debt-to-EBITDA distribution charts can be found below:

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

Ashtead Group Debt-to-EBITDA Calculation

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

Ashtead Group's Debt-to-EBITDA for the fiscal year that ended in Apr. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(233.2	+	8756.2)	/	4407.2
	=	2.04

Ashtead Group's annualized Debt-to-EBITDA for the quarter that ended in Jan. 2024 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(268.4	+	10919.7)	/	4666
	=	2.40

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 (Jan. 2024) EBITDA data.

Ashtead Group (OTCPK:ASHTF) 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.

Ashtead Group Debt-to-EBITDA Related Terms

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

Ashtead Group (Ashtead Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Ashtead Group PLC (OTCPK:ASHTF) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

ASHTY:USA AHTl:UK AHT:UK 0LC:Germany 0LC:Germany

Address

100 Cheapside, London, GBR, EC2V 6DT

Website

https://www.ashtead-group.com

Ashtead is an equipment rental business with operations in the U.S., Canada, and United Kingdom, operating under the Sunbelt Rentals brand. Earnings are mostly derived from the U.S. where Sunbelt enjoy a number-two market position with a 13% share in a highly fragmented market consisting of national, regional, and independent competitors. Ashtead rents a range of construction, industrial, and general equipment such as aerial lifts, hand-held tools, and forklifts across its more than 1,550 rental stores worldwide.