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Greaves Cotton (BOM:501455) Debt-to-EBITDA : 0.58 (As of Mar. 2024)


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What is Greaves Cotton Debt-to-EBITDA?

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

Greaves Cotton's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₹610 Mil. Greaves Cotton's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₹198 Mil. Greaves Cotton's annualized EBITDA for the quarter that ended in Mar. 2024 was ₹1,388 Mil. Greaves Cotton's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 was 0.58.

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

BOM:501455' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -0.45   Med: 0.14   Max: 5.75
Current: -0.45

During the past 13 years, the highest Debt-to-EBITDA Ratio of Greaves Cotton was 5.75. The lowest was -0.45. And the median was 0.14.

BOM:501455's Debt-to-EBITDA is ranked worse than
100% of 2288 companies
in the Industrial Products industry
Industry Median: 1.705 vs BOM:501455: -0.45

Greaves Cotton Debt-to-EBITDA Historical Data

The historical data trend for Greaves Cotton'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.

Greaves Cotton Debt-to-EBITDA Chart

Greaves Cotton Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.12 0.38 5.75 0.16 -0.45

Greaves Cotton Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 0.12 - -0.07 - 0.58

Competitive Comparison of Greaves Cotton's Debt-to-EBITDA

For the Specialty Industrial Machinery subindustry, Greaves Cotton'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.


Greaves Cotton's Debt-to-EBITDA Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Greaves Cotton's Debt-to-EBITDA distribution charts can be found below:

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



Greaves Cotton Debt-to-EBITDA Calculation

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

Greaves Cotton's Debt-to-EBITDA for the fiscal year that ended in Mar. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(610 + 197.5) / -1794.8
=-0.45

Greaves Cotton's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(610 + 197.5) / 1388.4
=0.58

* 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 (Mar. 2024) EBITDA data.


Greaves Cotton  (BOM:501455) 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.


Greaves Cotton Debt-to-EBITDA Related Terms

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


Greaves Cotton (BOM:501455) Business Description

Traded in Other Exchanges
Address
LBS Marg, Kurla (West), Unit No. 1A, 5th Floor, Tower 3, Equinox Business Park, Mumbai, MH, IND, 400 070
Greaves Cotton Ltd is a diversified engineering company. The company is a manufacturer and marketer of diesel engines, petrol engines, generator sets, pump sets, and construction equipment. Its product is used in automotive, marine, farm, construction and industrial applications. The company's operating segment includes Engines, Electric mobility and Others. The Engine segment includes the application of engines in farm equipment and gensets. It generates maximum revenue from the Engines segment. Geographically, it derives a majority of revenue from India.

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