ALIT.WS (Alight) Debt-to-EBITDA : 3.05 (As of Dec. 2024)

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What is Alight Debt-to-EBITDA?

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

Alight's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was $61.00 Mil. Alight's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was $2,095.00 Mil. Alight's annualized EBITDA for the quarter that ended in Dec. 2024 was $708.00 Mil. Alight's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2024 was 3.05.

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

ALIT.WS' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 6.16 Med: 8.65 Max: 17.39
Current: 6.16

During the past 7 years, the highest Debt-to-EBITDA Ratio of Alight was 17.39. The lowest was 6.16. And the median was 8.65.

ALIT.WS's Debt-to-EBITDA is ranked worse than
87.9% of 1669 companies
in the Software industry
Industry Median: 1.08 vs ALIT.WS: 6.16

Alight Debt-to-EBITDA Historical Data

The historical data trend for Alight'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.

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Alight Debt-to-EBITDA Chart

Alight Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Debt-to-EBITDA

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10.12

N/A

8.65

17.39

6.16

Alight Quarterly Data
	Dec19	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Debt-to-EBITDA	Get a 7-Day Free Trial															25.03	-91.84	6.19	8.58	3.05

Competitive Comparison of Alight's Debt-to-EBITDA

For the Software - Application subindustry, Alight'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.

Alight's Debt-to-EBITDA Distribution in the Software Industry

For the Software industry and Technology sector, Alight's Debt-to-EBITDA distribution charts can be found below:

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

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Alight Debt-to-EBITDA Calculation

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

Alight's Debt-to-EBITDA for the fiscal year that ended in Dec. 2024 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(61	+	2095)	/	350
	=	6.16

Alight's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2024 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(61	+	2095)	/	708
	=	3.05

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. 2024) EBITDA data.

Alight (NYSE:ALIT.WS) 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.

Alight Debt-to-EBITDA Related Terms

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

Alight Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Alight Inc (NYSE:ALIT.WS) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

ALIT:USA A9L0:Germany

Address

320 South Canal Street, 50th Floor, Suite 5000, Chicago, IL, USA, 60606

Website

https://www.alight.com

Alight Inc is a technology-enabled services company delivering human capital management solutions to many of complex organizations. This includes the implementation and administration of employee benefits (e.g., health, wealth and leaves benefits) solutions, currently operates under one reportable segment, Employer Solutions. The Company completed the Divestiture of Alight's Professional Services segment and Alight's Payroll & HCM Outsourcing business within the Employer Solutions segment. The company operates in USA states and International market too.