Terna SpA (Terna SpA) Debt-to-EBITDA : 4.79 (As of Sep. 2023)

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What is Terna SpA Debt-to-EBITDA?

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

Terna SpA's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $608 Mil. Terna SpA's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $10,374 Mil. Terna SpA's annualized EBITDA for the quarter that ended in Sep. 2023 was $2,292 Mil. Terna SpA's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 was 4.79.

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

TEZNY' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 4.76 Med: 5.98 Max: 6.84
Current: 4.76

During the past 13 years, the highest Debt-to-EBITDA Ratio of Terna SpA was 6.84. The lowest was 4.76. And the median was 5.98.

TEZNY's Debt-to-EBITDA is ranked worse than
61.82% of 461 companies
in the Utilities - Regulated industry
Industry Median: 3.54 vs TEZNY: 4.76

Terna SpA Debt-to-EBITDA Historical Data

The historical data trend for Terna SpA'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.

Terna SpA Debt-to-EBITDA Chart

Terna SpA Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

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5.52

6.84

6.64

5.19

4.84

Terna SpA 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															4.04	5.40	5.33	4.79	4.28

Competitive Comparison of Terna SpA's Debt-to-EBITDA

For the Utilities - Regulated Electric subindustry, Terna SpA'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.

Terna SpA's Debt-to-EBITDA Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Terna SpA's Debt-to-EBITDA distribution charts can be found below:

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

Terna SpA Debt-to-EBITDA Calculation

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

Terna SpA's Debt-to-EBITDA for the fiscal year that ended in Dec. 2022 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(2539.089	+	8915.996)	/	2205.508
	=	5.19

Terna SpA's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(608.431	+	10374.066)	/	2292.424
	=	4.79

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 (Sep. 2023) EBITDA data.

Terna SpA (OTCPK:TEZNY) 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.

Terna SpA Debt-to-EBITDA Related Terms

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

Terna SpA (Terna SpA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Terna SpA (OTCPK:TEZNY) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

TERRF:USA TRN:Italy TRNm:UK 0LBM:UK UEI:Germany

Address

Viale Egidio Galbani, 70, Rome, ITA, 00156

Website

https://www.terna.it

Terna SpA is an electricity transmission system operator that owns virtually all of the Italian National Transmission Grid. With a monopoly under an Italian government license, Terna transmits and dispatches electricity throughout the country. It is also responsible for the planning, construction, and maintenance of the nation's electrical grid. Terna segments its operations into its Regulated Activities, Non-Regulated Activities, and International Activities. The company generates the vast majority of its revenue from charging transmission fees as a part of its Regulated Activities. Under its Non-Regulated Activities, Terna mainly produces and sells electricity transformers. The company has also made efforts to expand its operations into Italy's neighboring countries and North Africa.

Terna SpA (Terna SpA) Headlines

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