FOJCF (Fortum Oyj) Debt-to-EBITDA : 4.22 (As of Sep. 2024)

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What is Fortum Oyj Debt-to-EBITDA?

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

Fortum Oyj's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was $564 Mil. Fortum Oyj's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was $5,375 Mil. Fortum Oyj's annualized EBITDA for the quarter that ended in Sep. 2024 was $1,407 Mil. Fortum Oyj's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2024 was 4.22.

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 Fortum Oyj's Debt-to-EBITDA or its related term are showing as below:

FOJCF' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 2.57 Med: 3.42 Max: 24.12
Current: 2.57

During the past 13 years, the highest Debt-to-EBITDA Ratio of Fortum Oyj was 24.12. The lowest was 2.57. And the median was 3.42.

FOJCF's Debt-to-EBITDA is ranked better than
70.03% of 337 companies
in the Utilities - Independent Power Producers industry
Industry Median: 4.35 vs FOJCF: 2.57

Fortum Oyj Debt-to-EBITDA Historical Data

The historical data trend for Fortum Oyj'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.

Fortum Oyj Debt-to-EBITDA Chart

Fortum Oyj Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

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2.70

3.04

3.37

3.46

2.68

Fortum Oyj 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															3.71	2.48	1.99	3.11	4.22

Competitive Comparison of Fortum Oyj's Debt-to-EBITDA

For the Utilities - Renewable subindustry, Fortum Oyj'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.

Fortum Oyj's Debt-to-EBITDA Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Fortum Oyj's Debt-to-EBITDA distribution charts can be found below:

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

Fortum Oyj Debt-to-EBITDA Calculation

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

Fortum Oyj'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
	=	(1459.106	+	4986.914)	/	2410.033
	=	2.67

Fortum Oyj'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
	=	(563.818	+	5375.139)	/	1407.324
	=	4.22

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.

Fortum Oyj (OTCPK:FOJCF) 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.

Fortum Oyj Debt-to-EBITDA Related Terms

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

Fortum Oyj Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Fortum Oyj (OTCPK:FOJCF) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

FOJCY:USA 1FORT:Italy FORTMh:UK 0HAH:UK FORTUM:Finland FOT:Germany

Address

Keilalahdentie 2-4, CD Building, P.O. Box 100, Espoo, FIN, 02150

Website

https://www.fortum.com

Fortum Oyj is a Finnish energy company that operates power plants, which use renewable energy sources (hydro, nuclear, and solar power) to sell electricity, heat, cooling, and power products and services. The company mainly operates in Nordic and Baltic countries, Russia, Poland, and India. Its main divisions of the company are generation (large-scale power production), city solutions (sustainable energy solutions), Russia (all Russian operations), technology and new ventures (research and development and in-house incubator for startups), mergers and acquisitions, and solar and wind development. The company's operating segments are Generation, Consumer Solutions, and Other Operations.