Gildan Activewear (Gildan Activewear) Debt-to-EBITDA : 1.34 (As of Dec. 2023)

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What is Gildan Activewear Debt-to-EBITDA?

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

Gildan Activewear's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $314 Mil. Gildan Activewear's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $769 Mil. Gildan Activewear's annualized EBITDA for the quarter that ended in Dec. 2023 was $809 Mil. Gildan Activewear's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 1.34.

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

GIL' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -22.32 Med: 1.2 Max: 2.11
Current: 1.45

During the past 13 years, the highest Debt-to-EBITDA Ratio of Gildan Activewear was 2.11. The lowest was -22.32. And the median was 1.20.

GIL's Debt-to-EBITDA is ranked better than
68.91% of 801 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 2.84 vs GIL: 1.45

Gildan Activewear Debt-to-EBITDA Historical Data

The historical data trend for Gildan Activewear'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.

Gildan Activewear Debt-to-EBITDA Chart

Gildan Activewear Annual Data

Trend

Sep14

Sep15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

Get a 7-Day Free Trial

2.11

-22.32

0.91

1.42

1.46

Gildan Activewear 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															2.17	2.03	1.48	1.55	1.34

Competitive Comparison of Gildan Activewear's Debt-to-EBITDA

For the Apparel Manufacturing subindustry, Gildan Activewear'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.

Gildan Activewear's Debt-to-EBITDA Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Gildan Activewear's Debt-to-EBITDA distribution charts can be found below:

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

Gildan Activewear Debt-to-EBITDA Calculation

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

Gildan Activewear'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
	=	(314.161	+	768.9)	/	743.03
	=	1.46

Gildan Activewear'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
	=	(314.161	+	768.9)	/	808.704
	=	1.34

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.

Gildan Activewear (NYSE:GIL) 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.

Gildan Activewear Debt-to-EBITDA Related Terms

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

Gildan Activewear (Gildan Activewear) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Gildan Activewear Inc (NYSE:GIL) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

VGA:Germany GIL:Canada

Address

600 de Maisonneuve Boulevard West, 33rd Floor, Suite 330, Montreal, QC, CAN, H3A 3J2

Website

http://www.gildan.com

Gildan is a vertically integrated designer and manufacturer of basic apparel, including T-shirts, underwear, socks, and hosiery. Its primary market is the sale of blank T-shirts, sweatshirts, and other apparel to wholesalers, major clothing brands, and printers (printwear). Gildan also sells branded clothing through retail and direct-to-consumer channels. Brands include Gildan, American Apparel, Comfort Colors, and Gold Toe. Gildan produces most of its clothing at factories in Latin America and recently began operating a new plant in Bangladesh. Incorporated in 1984, the Montreal-based company operates internationally but generates nearly 90% of its sales in the U.S.