CDNTF (Canadian Tire) Debt-to-EBITDA : 4.14 (As of Sep. 2024)

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What is Canadian Tire Debt-to-EBITDA?

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

Canadian Tire's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was $1,947 Mil. Canadian Tire's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was $4,415 Mil. Canadian Tire's annualized EBITDA for the quarter that ended in Sep. 2024 was $1,536 Mil. Canadian Tire's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2024 was 4.14.

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

CDNTF' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 2.45 Med: 3.02 Max: 5.97
Current: 4.6

During the past 13 years, the highest Debt-to-EBITDA Ratio of Canadian Tire was 5.97. The lowest was 2.45. And the median was 3.02.

CDNTF's Debt-to-EBITDA is ranked worse than
71.35% of 855 companies
in the Retail - Cyclical industry
Industry Median: 2.77 vs CDNTF: 4.60

Canadian Tire Debt-to-EBITDA Historical Data

The historical data trend for Canadian Tire'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.

Canadian Tire Debt-to-EBITDA Chart

Canadian Tire Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

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4.01

3.65

2.84

3.20

5.97

Canadian Tire Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Debt-to-EBITDA	Get a 7-Day Free Trial															7.17	4.49	6.54	4.11	4.14

Competitive Comparison of Canadian Tire's Debt-to-EBITDA

For the Specialty Retail subindustry, Canadian Tire'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.

Canadian Tire's Debt-to-EBITDA Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Canadian Tire's Debt-to-EBITDA distribution charts can be found below:

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

Canadian Tire Debt-to-EBITDA Calculation

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

Canadian Tire's Debt-to-EBITDA for the fiscal year 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
	=	(1807.245	+	4762.97)	/	1100.552
	=	5.97

Canadian Tire'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
	=	(1947.291	+	4414.956)	/	1536.396
	=	4.14

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 (Sep. 2024) EBITDA data.

Canadian Tire (OTCPK:CDNTF) 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.

Canadian Tire Debt-to-EBITDA Related Terms

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

Canadian Tire Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Canadian Tire Corp Ltd (OTCPK:CDNTF) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

CDNAF:USA CTC.A:Canada CTC:Canada

Address

2180 Yonge Street, P.O. Box 770, Toronto, ON, CAN, M4P 2V8

Website

https://www.corp.canadiantire.ca

Canadian Tire is a leading general merchandise retailer with over 1,400 affiliated stores across Canada. The company operates about 650 stores, with the remaining operated by franchisees or third-party dealers. The retailer boasts a wide array of owned and affiliated banners that include its iconic namesake brand, Mark's, Sport Chek, Sports Experts, PartSource, Party City, and Helly Hansen. Its wide product assortment includes automotive parts, appliances, home improvement items, sporting goods, and apparel. The firm also offers a loyalty program with 11 million members and owns a financial services arm that manages a credit card portfolio for its more than 2 million active users.