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AIA Group (FRA:7A2) Debt-to-EBITDA : 1.45 (As of Jun. 2024)


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What is AIA Group Debt-to-EBITDA?

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

AIA Group's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was €0 Mil. AIA Group's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was €11,076 Mil. AIA Group's annualized EBITDA for the quarter that ended in Jun. 2024 was €7,627 Mil. AIA Group's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2024 was 1.45.

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

FRA:7A2' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.53   Med: 0.95   Max: 2.32
Current: 1.83

During the past 13 years, the highest Debt-to-EBITDA Ratio of AIA Group was 2.32. The lowest was 0.53. And the median was 0.95.

FRA:7A2's Debt-to-EBITDA is ranked worse than
67.57% of 296 companies
in the Insurance industry
Industry Median: 1.085 vs FRA:7A2: 1.83

AIA Group Debt-to-EBITDA Historical Data

The historical data trend for AIA Group'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.

AIA Group Debt-to-EBITDA Chart

AIA Group Annual Data
Trend Nov14 Nov15 Nov16 Nov17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.82 1.14 1.04 2.32 2.23

AIA Group Semi-Annual Data
Nov14 May15 Nov15 May16 Nov16 May17 Nov17 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 2.38 2.10 1.86 2.51 1.45

Competitive Comparison of AIA Group's Debt-to-EBITDA

For the Insurance - Life subindustry, AIA Group'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.


AIA Group's Debt-to-EBITDA Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, AIA Group's Debt-to-EBITDA distribution charts can be found below:

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



AIA Group Debt-to-EBITDA Calculation

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

AIA Group'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
=(0 + 11155.305) / 5011.405
=2.23

AIA Group'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
=(0 + 11076.467) / 7627.09
=1.45

* 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.


AIA Group  (FRA:7A2) 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.


AIA Group Debt-to-EBITDA Related Terms

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


AIA Group Business Description

Address
No. 1 Connaught Road Central, 35th Floor, AIA Central, Hong Kong, HKG
Headquartered in Hong Kong, AIA is one of the largest pan-Asian insurance providers with a wide range of products including retirement savings plans, life insurance, and accident and health insurance. It was previously part of American International Group and went for a separate listing in Hong Kong in 2010. The firm also provides employee benefits, credit life, and pension services to corporate clients. AIA is present in 18 markets and serves the holders of more than 30 million individual policies and over 16 million participating members of group insurance schemes.

AIA Group Headlines

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