Pu`er Lancang Ancient Tea Co (HKSE:06911) Debt-to-EBITDA : 1.86 (As of Dec. 2023)

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What is Pu`er Lancang Ancient Tea Co Debt-to-EBITDA?

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

Pu`er Lancang Ancient Tea Co's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was HK$178.8 Mil. Pu`er Lancang Ancient Tea Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was HK$242.6 Mil. Pu`er Lancang Ancient Tea Co's annualized EBITDA for the quarter that ended in Dec. 2023 was HK$226.1 Mil. Pu`er Lancang Ancient Tea Co's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 1.86.

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 Pu`er Lancang Ancient Tea Co's Debt-to-EBITDA or its related term are showing as below:

HKSE:06911' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.04 Med: 1.88 Max: 2.58
Current: 2.29

During the past 4 years, the highest Debt-to-EBITDA Ratio of Pu`er Lancang Ancient Tea Co was 2.58. The lowest was 1.04. And the median was 1.88.

HKSE:06911's Debt-to-EBITDA is ranked worse than
51.36% of 1437 companies
in the Consumer Packaged Goods industry
Industry Median: 2.14 vs HKSE:06911: 2.29

Pu`er Lancang Ancient Tea Co Debt-to-EBITDA Historical Data

The historical data trend for Pu`er Lancang Ancient Tea Co'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.

Pu`er Lancang Ancient Tea Co Debt-to-EBITDA Chart

Pu`er Lancang Ancient Tea Co Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

1.04

1.48

2.58

2.29

Pu`er Lancang Ancient Tea Co Semi-Annual Data
	Dec20	Dec21	Jun22	Dec22	Jun23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial			N/A	-	2.26	2.84	1.86

Competitive Comparison of Pu`er Lancang Ancient Tea Co's Debt-to-EBITDA

For the Farm Products subindustry, Pu`er Lancang Ancient Tea Co'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.

Pu`er Lancang Ancient Tea Co's Debt-to-EBITDA Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Pu`er Lancang Ancient Tea Co's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Pu`er Lancang Ancient Tea Co's Debt-to-EBITDA falls into.

Pu`er Lancang Ancient Tea Co Debt-to-EBITDA Calculation

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

Pu`er Lancang Ancient Tea Co'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
	=	(178.813	+	242.577)	/	184.213
	=	2.29

Pu`er Lancang Ancient Tea Co's annualized Debt-to-EBITDA for the quarter 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
	=	(178.813	+	242.577)	/	226.06
	=	1.86

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 (Dec. 2023) EBITDA data.

Pu`er Lancang Ancient Tea Co (HKSE:06911) 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.

Pu`er Lancang Ancient Tea Co Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Pu`er Lancang Ancient Tea Co's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.

Pu`er Lancang Ancient Tea Co (HKSE:06911) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Pu`er Lancang Ancient Tea Co Ltd (HKSE:06911) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

N/A

Address

Pingzhang Road, West Suburb Hot Spring Community, Lancang Lahu Ethnic Autonomous County, Yunnan Province, Menglang Town, Puer, CHN

Website

http://www.lcgc.cn

Pu`er Lancang Ancient Tea Co Ltd is principally engaged in the development, manufacturing and sales of tea products, primarily Pu'er tea products in China.

Executives

China Credit Trust Co., Ltd	2201 Interest of corporation controlled by you
Harvest Fund Management Co., Ltd.	2201 Interest of corporation controlled by you
Lan Cang Lv Se Zi Yuan Tou Zi You Xian Gong Si	2101 Beneficial owner
Lan Cang Xian Guo You Zi Chan Jing Ying You Xian Ze Ren Gong Si	2201 Interest of corporation controlled by you
Lan Cang Xian Tou Zi Kong Gu Ji Tuan You Xian Gong Si	2201 Interest of corporation controlled by you
Sheng Song Lan Cang Sheng Shi Cha Xiang Yi Hao Si Mu Zheng Quan Tou Zi Ji Jin	2101 Beneficial owner
Dong Xing An Xin Hao Dan Yi Zi Chan Guan Li Ji Hua	2301 Trustee
Wang Chen	2201 Interest of corporation controlled by you
Zhang Liang	2201 Interest of corporation controlled by you
Zhong Guo Hai Jing Ji Tuan You Xian Gong Si	2101 Beneficial owner
Wang Chunyu	2101 Beneficial owner

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