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IPH (FRA:1IP) Debt-to-EBITDA : 2.38 (As of Jun. 2024)


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What is IPH Debt-to-EBITDA?

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

IPH's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was €6.1 Mil. IPH's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was €297.3 Mil. IPH's annualized EBITDA for the quarter that ended in Jun. 2024 was €127.4 Mil. IPH's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2024 was 2.38.

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

FRA:1IP' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.35   Med: 1.42   Max: 2.77
Current: 2.74

During the past 10 years, the highest Debt-to-EBITDA Ratio of IPH was 2.77. The lowest was 0.35. And the median was 1.42.

FRA:1IP's Debt-to-EBITDA is ranked worse than
63.17% of 820 companies
in the Business Services industry
Industry Median: 1.825 vs FRA:1IP: 2.74

IPH Debt-to-EBITDA Historical Data

The historical data trend for IPH'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.

IPH Debt-to-EBITDA Chart

IPH Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.85 1.43 1.41 2.77 2.74

IPH Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 1.34 3.05 2.50 3.76 2.38

Competitive Comparison of IPH's Debt-to-EBITDA

For the Specialty Business Services subindustry, IPH'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.


IPH's Debt-to-EBITDA Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, IPH's Debt-to-EBITDA distribution charts can be found below:

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



IPH Debt-to-EBITDA Calculation

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

IPH's Debt-to-EBITDA for the fiscal year that ended in Jun. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(6.107 + 297.268) / 110.789
=2.74

IPH's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(6.107 + 297.268) / 127.418
=2.38

* 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 two times the quarterly (Jun. 2024) EBITDA data.


IPH  (FRA:1IP) 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.


IPH Debt-to-EBITDA Related Terms

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


IPH Business Description

Traded in Other Exchanges
Address
201 Sussex Street, Level 24, Tower 2, Darling Park, Sydney, NSW, AUS, 2000
IPH provides intellectual property services through its subsidiaries: Spruson and Ferguson, Smart & Biggar, Robic, Pizzeys, Griffith Hack, Applied Marks, and AJ Park. These services include patent filing, prosecution, enforcement, management, design, trademarks, and more. The company's diverse client base consists of multinationals, public sector research organizations, and local businesses across various industries like healthcare, finance, engineering, and technology. Revenue streams mainly consist of professional fees (fixed) and volume-based fees (linked to the quantity of work performed). About 70% of revenue is derived from pre-existing work in the system, while 30% comes from new patent applications.

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