Promax Power (BOM:543375) Debt-to-EBITDA : 2.85 (As of Sep. 2024)

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What is Promax Power Debt-to-EBITDA?

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

Promax Power's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was ₹134.8 Mil. Promax Power's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was ₹7.5 Mil. Promax Power's annualized EBITDA for the quarter that ended in Sep. 2024 was ₹49.9 Mil. Promax Power's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2024 was 2.85.

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

BOM:543375' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 3.23 Med: 4.75 Max: 6.52
Current: 3.23

During the past 4 years, the highest Debt-to-EBITDA Ratio of Promax Power was 6.52. The lowest was 3.23. And the median was 4.75.

BOM:543375's Debt-to-EBITDA is ranked worse than
59.74% of 1366 companies
in the Construction industry
Industry Median: 2.3 vs BOM:543375: 3.23

Promax Power Debt-to-EBITDA Historical Data

The historical data trend for Promax Power'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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Promax Power Debt-to-EBITDA Chart

Promax Power Annual Data

Trend

Mar21

Mar22

Mar23

Mar24

Debt-to-EBITDA

4.61

6.52

4.90

3.96

Promax Power Semi-Annual Data
	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24
Debt-to-EBITDA	Get a 7-Day Free Trial			9.03	5.55	0.26	3.42	2.85

Competitive Comparison of Promax Power's Debt-to-EBITDA

For the Engineering & Construction subindustry, Promax Power'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.

Promax Power's Debt-to-EBITDA Distribution in the Construction Industry

For the Construction industry and Industrials sector, Promax Power's Debt-to-EBITDA distribution charts can be found below:

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

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Promax Power Debt-to-EBITDA Calculation

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

Promax Power'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
	=	(128.129	+	2.517)	/	32.989
	=	3.96

Promax Power's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2024 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(134.796	+	7.5)	/	49.934
	=	2.85

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 (Sep. 2024) EBITDA data.

Promax Power (BOM:543375) 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.

Promax Power Debt-to-EBITDA Related Terms

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

Promax Power Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Promax Power Ltd (BOM:543375) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

N/A

Address

Sector 82, Industrial Area, Plot No 148 A, JLPL, Mohali, PB, IND, 140306

Website

https://www.promax.co.in

Promax Power Ltd is engaged in the business of engineering procurement construction for electrification, civil infrastructure, and water infrastructure management projects. The company also provides turnkey execution of civil infrastructure projects such as industrial buildings and turnkey execution of water infrastructure management projects such as water transmission and distribution work.

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