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Aussie Broadband (ASX:ABB) Debt-to-EBITDA : 0.96 (As of Dec. 2023)


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What is Aussie Broadband Debt-to-EBITDA?

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

Aussie Broadband's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$11.7 Mil. Aussie Broadband's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$77.3 Mil. Aussie Broadband's annualized EBITDA for the quarter that ended in Dec. 2023 was A$92.8 Mil. Aussie Broadband's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 0.96.

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

ASX:ABB' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.94   Med: 2.29   Max: 6.17
Current: 0.94

During the past 4 years, the highest Debt-to-EBITDA Ratio of Aussie Broadband was 6.17. The lowest was 0.94. And the median was 2.29.

ASX:ABB's Debt-to-EBITDA is ranked better than
74.45% of 317 companies
in the Telecommunication Services industry
Industry Median: 2.1 vs ASX:ABB: 0.94

Aussie Broadband Debt-to-EBITDA Historical Data

The historical data trend for Aussie Broadband'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.

Aussie Broadband Debt-to-EBITDA Chart

Aussie Broadband Annual Data
Trend Jun20 Jun21 Jun22 Jun23
Debt-to-EBITDA
N/A 1.87 6.17 2.29

Aussie Broadband Semi-Annual Data
Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Debt-to-EBITDA Get a 7-Day Free Trial 1.81 4.01 - 2.10 0.96

Competitive Comparison of Aussie Broadband's Debt-to-EBITDA

For the Telecom Services subindustry, Aussie Broadband'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.


Aussie Broadband's Debt-to-EBITDA Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Aussie Broadband's Debt-to-EBITDA distribution charts can be found below:

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



Aussie Broadband Debt-to-EBITDA Calculation

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

Aussie Broadband's Debt-to-EBITDA for the fiscal year that ended in Jun. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(23.629 + 180.373) / 89.231
=2.29

Aussie Broadband'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
=(11.666 + 77.291) / 92.832
=0.96

* 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 two times the quarterly (Dec. 2023) EBITDA data.


Aussie Broadband  (ASX:ABB) 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.


Aussie Broadband Debt-to-EBITDA Related Terms

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


Aussie Broadband (ASX:ABB) Business Description

Traded in Other Exchanges
N/A
Address
3 Electra Avenue, Morwell, VIC, AUS, 3840
Aussie Broadband Ltd is a telecommunications company. It provides NBN subscription plans and bundles to residential homes, small businesses, not-for-profits, corporate/enterprise, and managed service providers. It is organized into four operating segments: Residential, Business, Wholesale, and Enterprise and Government. The Residential segment is the main revenue driver for the group. Residential segment provides telecommunications services to residential users. The company services all states and territories in Australia.

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