Active Fine Chemicals (DHA:ACTIVEFINE) Debt-to-EBITDA : 10.57 (As of Mar. 2023)

What is Active Fine Chemicals Debt-to-EBITDA?

Active Fine Chemicals DHA:ACTIVEFINE +5.80% 10 Debt-to-EBITDA is 10.57 as of Mar. 2023. GuruFocus rates DHA:ACTIVEFINE with a GF Score™ of 10/100.

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

Active Fine Chemicals's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2023 was BDT3,148 Mil. Active Fine Chemicals's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2023 was BDT196 Mil. Active Fine Chemicals's annualized EBITDA for the quarter that ended in Mar. 2023 was BDT316 Mil. Active Fine Chemicals's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2023 was 10.57.

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 Active Fine Chemicals's Debt-to-EBITDA or its related term are showing as below:

DHA:ACTIVEFINE's Debt-to-EBITDA is not ranked ^*
in the Chemicals industry.
Industry Median: 2.16
* Ranked among companies with meaningful Debt-to-EBITDA only.

Active Fine Chemicals (DHA:ACTIVEFINE) 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.

Active Fine Chemicals Debt-to-EBITDA Related Terms

Active Fine Chemicals Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Active Fine Chemicals'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.

Active Fine Chemicals Debt-to-EBITDA Chart

Active Fine Chemicals Annual Data

Trend

Dec13

Dec14

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Debt-to-EBITDA

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1.66

1.62

8.28

6.64

6.79

Active Fine Chemicals Quarterly Data
	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Dec22	Mar23
Debt-to-EBITDA	Get a 7-Day Free Trial															11.69	9.76	21.75	11.58	10.57

DHA:ACTIVEFINE vs DOW, CE: Debt-to-EBITDA Comparison

For the Chemicals subindustry, Active Fine Chemicals'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.

Active Fine Chemicals Debt-to-EBITDA vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Active Fine Chemicals's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Active Fine Chemicals's Debt-to-EBITDA falls into.

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Active Fine Chemicals Ltd DHA:ACTIVEFINE

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Active Fine Chemicals Debt-to-EBITDA Calculation

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

Active Fine Chemicals's Debt-to-EBITDA for the fiscal year that ended in Jun. 2022 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(2993.562	+	195.918)	/	470.083
	=	6.78

Active Fine Chemicals's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(3147.78	+	195.701)	/	316.312
	=	10.57

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. 2023) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →

What does a Debt-to-EBITDA of 10.57 mean?

Active Fine Chemicals (DHA:ACTIVEFINE) has a Debt-to-EBITDA of 10.57 as of Mar. 2023. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Active Fine Chemicals.

Is Active Fine Chemicals' Debt-to-EBITDA too high?

Active Fine Chemicals' current Debt-to-EBITDA is 10.57. The Chemicals industry median Debt-to-EBITDA is 2.16. Active Fine Chemicals' value of 10.57 is 389.4% above this industry median. Overall, Active Fine Chemicals has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.

How does Active Fine Chemicals' Debt-to-EBITDA compare to DOW and CE?

Active Fine Chemicals' Debt-to-EBITDA of 10.57 can be compared against companies in the Chemicals industry. The industry median Debt-to-EBITDA is 2.16. Active Fine Chemicals' value of 10.57 is 389.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good Debt-to-EBITDA for a Chemicals company?

The median Debt-to-EBITDA among Chemicals companies is 2.16, based on 1,230 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Active Fine Chemicals's current Debt-to-EBITDA of 10.57 is 389.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high Debt-to-EBITDA mean?

A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Active Fine Chemicals. For the Chemicals industry, the median Debt-to-EBITDA is 2.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Active Fine Chemicals's current Debt-to-EBITDA is 10.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Active Fine Chemicals stock overvalued right now?

Active Fine Chemicals (DHA:ACTIVEFINE) has a current Debt-to-EBITDA of 10.57. The current Debt-to-EBITDA is 10.57 and 389.4% above the Chemicals industry median of 2.16. Active Fine Chemicals' overall GF Score™ is 10/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is Debt-to-EBITDA calculated?

Debt-to-EBITDA is calculated from a company's financial statements. For Active Fine Chemicals (DHA:ACTIVEFINE), the current Debt-to-EBITDA is 10.57 as of Mar. 2023. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Active Fine Chemicals Business Description

Industry Basic Materials Chemicals

Comparable Companies DHA:SALVOCHEM DHA:GHCL SAU:2010 TSE:4063 XTER:BAS DOW XKRX:051910 SZSE:002493 SHSE:600989 XKRX:086520 CE XKLS:5183 SZSE:002460 TPE:1326 TSE:4091 XBRU:SOLB SHSE:600426 SHSE:603260 TSE:3407 SAU:2310

Address House number 87-89, Road number 04, Block number B, Niketon, Gulshan-1, Dhaka, BGD, 1212

Website https://www.afchem.com

Active Fine Chemicals Ltd is a Bangladesh based chemical company engaged in manufacturing active pharmaceutical ingredients and laboratory reagents. Its product offerings include azithromycin dihydrate, erythromycin ethyl succinate, erythromycin stearate, pantoprazole sodium sesquihydrate, venlafaxine HCL, sitagliptin phosphate monohydrate, and pregabalin. While it also manufactures laboratory reagents including HPLC Grade solvents, solvents, and powder reagents.

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