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AAN (The Aarons Co) Debt-to-EBITDA : 1.49 (As of Jun. 2024)


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What is The Aarons Co Debt-to-EBITDA?

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

The Aarons Co's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was $12 Mil. The Aarons Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was $689 Mil. The Aarons Co's annualized EBITDA for the quarter that ended in Jun. 2024 was $469 Mil. The Aarons Co's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2024 was 1.49.

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 The Aarons Co's Debt-to-EBITDA or its related term are showing as below:

AAN' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.43   Med: 1.14   Max: 1.53
Current: 1.42

During the past 7 years, the highest Debt-to-EBITDA Ratio of The Aarons Co was 1.53. The lowest was 0.43. And the median was 1.14.

AAN's Debt-to-EBITDA is not ranked
in the Business Services industry.
Industry Median: 1.84 vs AAN: 1.42

The Aarons Co Debt-to-EBITDA Historical Data

The historical data trend for The Aarons Co'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.

The Aarons Co Debt-to-EBITDA Chart

The Aarons Co Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Debt-to-EBITDA
Get a 7-Day Free Trial 1.04 1.53 0.43 1.26 1.24

The Aarons Co Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 1.15 1.31 1.40 1.44 1.49

Competitive Comparison of The Aarons Co's Debt-to-EBITDA

For the Rental & Leasing Services subindustry, The Aarons Co'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.


The Aarons Co's Debt-to-EBITDA Distribution in the Business Services Industry

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

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



The Aarons Co Debt-to-EBITDA Calculation

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

The Aarons Co'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
=(6.388 + 690.267) / 564.037
=1.24

The Aarons Co's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(12.475 + 688.665) / 469.436
=1.49

* 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 (Jun. 2024) EBITDA data.


The Aarons Co  (NYSE:AAN) 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.


The Aarons Co Debt-to-EBITDA Related Terms

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


The Aarons Co Business Description

Traded in Other Exchanges
N/A
Address
400 Galleria Parkway SE, Suite 300, Atlanta, GA, USA, 30339-3182
The Aarons Co Inc is a specialty retailer that has developed a lease-to-own model. It serves customers through the sale and lease ownership of furniture, consumer electronics, computers, home appliances, and other accessories with the highest quality products. Aaron's services are available through multiple channels to approximately 40-50 % of the U.S. population. The Company conducts its operations through two primary operating business segments: Aaron's Business and BrandsMart.
Executives
Rachel G George officer: EVP, Gen Counsel/Corp Sec 400 GALLERIA PKWY SE, SUITE 300, ATLANTA GA 30339
Stephen W Olsen officer: President 400 GALLERIA PARKWAY SE, SUITE 300, ATLANTA GA 30339
Douglas A Lindsay director, officer: Chief Executive Officer 309 E. PACES FERRY ROAD, ATLANTA GA 30305
Wangdali Bacdayan director 400 GALLERIA PARKWAY SE, SUITE 300, ATLANTA GA 30339
Douglass L Noe officer: VP, Corporate Controller 400 GALLERIA PARKWAY SE, SUITE 300, ATLANTA GA 30339
Kristine Kay Malkoski director 6655 PEACHTREE DUNWOODY ROAD, ATLANTA GA 30328
Russell Falkenstein officer: EVP, COO, Lease-to-Own 400 GALLERIA PARKWAY SE, SUITE 300, ATLANTA GA 30339
John W Robinson director 309 E PACES FERRY RD, SUITE 1100, ATLANTA GA 30505
Harris Hubert L. Jr. director 309 E. PACES FERRY ROAD, ATLANTA GA 30305
Marvonia P Moore director 400 GALLERIA PARKWAY SE, SUITE 300, ATLANTA GA 30339
Kelly Hefner Barrett director 4630 WYNMEADE PARK, MARIETTA GA 30067
Timothy A Johnson director
Laura N Bailey director 400 GALLERIA PARKWAY SE, SUITE 300, ATLANTA GA 30339
Sinclair Robert P Jr officer: Corporate Controller and CAO 309 E. PACES FERRY RD N.E., ATLANTA GA 30305-2377
Aaron's Holdings Company, Inc. 10 percent owner 256 W. DATA DRIVE, DRAPER UT 84020