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WABCO Holdings (FRA:WB0) Debt-to-EBITDA : 2.89 (As of Mar. 2020)


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What is WABCO Holdings Debt-to-EBITDA?

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

WABCO Holdings's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2020 was €0 Mil. WABCO Holdings's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2020 was €799 Mil. WABCO Holdings's annualized EBITDA for the quarter that ended in Mar. 2020 was €276 Mil. WABCO Holdings's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2020 was 2.89.

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

FRA:WB0's Debt-to-EBITDA is not ranked *
in the Vehicles & Parts industry.
Industry Median: 2.35
* Ranked among companies with meaningful Debt-to-EBITDA only.

WABCO Holdings Debt-to-EBITDA Historical Data

The historical data trend for WABCO Holdings'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.

WABCO Holdings Debt-to-EBITDA Chart

WABCO Holdings Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.27 1.99 2.52 1.33 1.95

WABCO Holdings Quarterly Data
Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20
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 1.82 1.75 2.09 2.80 2.89

Competitive Comparison of WABCO Holdings's Debt-to-EBITDA

For the Auto Parts subindustry, WABCO Holdings'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.


WABCO Holdings's Debt-to-EBITDA Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, WABCO Holdings's Debt-to-EBITDA distribution charts can be found below:

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



WABCO Holdings Debt-to-EBITDA Calculation

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

WABCO Holdings's Debt-to-EBITDA for the fiscal year that ended in Dec. 2019 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0 + 812.25) / 415.71
=1.95

WABCO Holdings's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2020 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0 + 799.205) / 276.204
=2.89

* 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 four times the quarterly (Mar. 2020) EBITDA data.


WABCO Holdings  (FRA:WB0) 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.


WABCO Holdings Debt-to-EBITDA Related Terms

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


WABCO Holdings (FRA:WB0) Business Description

Traded in Other Exchanges
N/A
Address
1220 Pacific Drive, Auburn Hills, MI, USA, 48326-3511
WABCO Holdings Inc is a producer of car and truck safety and efficiency technologies. The product lineup includes driver assistance systems, brake and stability control systems, brake chambers, suspensions, emission control systems, and fleet management systems. The products are developed for cars, busses, trailers, trucks, and utility vehicles. The majority of revenue is generated in Germany and the United States of America.

WABCO Holdings (FRA:WB0) Headlines

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