Prime Financial Group (ASX:PFG) Debt-to-EBITDA : 3.69 (As of Dec. 2023)

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What is Prime Financial Group Debt-to-EBITDA?

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

Prime Financial Group's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$2.71 Mil. Prime Financial Group's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$12.37 Mil. Prime Financial Group's annualized EBITDA for the quarter that ended in Dec. 2023 was A$4.09 Mil. Prime Financial Group's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 3.69.

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 Prime Financial Group's Debt-to-EBITDA or its related term are showing as below:

ASX:PFG' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -0.45 Med: 1.39 Max: 4.31
Current: 2.06

During the past 13 years, the highest Debt-to-EBITDA Ratio of Prime Financial Group was 4.31. The lowest was -0.45. And the median was 1.39.

ASX:PFG's Debt-to-EBITDA is ranked worse than
58.73% of 361 companies
in the Asset Management industry
Industry Median: 1.3 vs ASX:PFG: 2.06

Prime Financial Group Debt-to-EBITDA Historical Data

The historical data trend for Prime Financial Group'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.

Prime Financial Group Debt-to-EBITDA Chart

Prime Financial Group Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Debt-to-EBITDA

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2.24

2.23

1.42

0.92

1.23

Prime Financial Group Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial															1.49	0.74	1.34	1.07	3.69

Competitive Comparison of Prime Financial Group's Debt-to-EBITDA

For the Asset Management subindustry, Prime Financial Group'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.

Prime Financial Group's Debt-to-EBITDA Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Prime Financial Group's Debt-to-EBITDA distribution charts can be found below:

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

Prime Financial Group Debt-to-EBITDA Calculation

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

Prime Financial Group'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
	=	(2.481	+	8.814)	/	9.191
	=	1.23

Prime Financial Group'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
	=	(2.709	+	12.368)	/	4.088
	=	3.69

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.

Prime Financial Group (ASX:PFG) 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.

Prime Financial Group Debt-to-EBITDA Related Terms

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

Prime Financial Group (ASX:PFG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Prime Financial Group Ltd (ASX:PFG) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

N/A

Address

40 City Road, Level 17, HWT Tower, Southbank, Melbourne, VIC, AUS, 3006

Website

https://www.primefinancial.com.au

Prime Financial Group Ltd is an integrated accounting and business advisory, wealth management, and capital advisory company for business owners and family groups. It offers services accounting and tax compliance, start-up services, SME advisory, director and board services, life insurance, estate planning, lending and finance, transaction and restructuring services, superannuation, and others. Its segments are Accounting and Business Advisory plus Capital and the other to Wealth Management and Self- Managed Superannuation (SMSF). The company generates the majority of its revenue from Accounting and Business Advisory plus Capital.