IHS Markit (IHS Markit) Debt-to-EBITDA : 1.38 (As of Nov. 2021)

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What is IHS Markit Debt-to-EBITDA?

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

IHS Markit's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Nov. 2021 was $803 Mil. IHS Markit's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Nov. 2021 was $4,155 Mil. IHS Markit's annualized EBITDA for the quarter that ended in Nov. 2021 was $3,604 Mil. IHS Markit's annualized Debt-to-EBITDA for the quarter that ended in Nov. 2021 was 1.38.

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

INFO' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 2.31 Med: 3.85 Max: 6.51
Current: 2.31

During the past 13 years, the highest Debt-to-EBITDA Ratio of IHS Markit was 6.51. The lowest was 2.31. And the median was 3.85.

INFO's Debt-to-EBITDA is not ranked
in the Business Services industry.
Industry Median: 1.83 vs INFO: 2.31

IHS Markit Debt-to-EBITDA Historical Data

The historical data trend for IHS Markit'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.

IHS Markit Debt-to-EBITDA Chart

IHS Markit Annual Data

Trend

Nov12

Nov13

Nov14

Nov15

Nov16

Nov17

Nov18

Nov19

Nov20

Nov21

Debt-to-EBITDA

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4.12

4.77

3.25

3.08

2.31

IHS Markit Quarterly Data
	Feb17	May17	Aug17	Nov17	Feb18	May18	Aug18	Nov18	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21
Debt-to-EBITDA	Get a 7-Day Free Trial															4.09	3.56	3.12	2.98	1.38

Competitive Comparison of IHS Markit's Debt-to-EBITDA

For the Consulting Services subindustry, IHS Markit'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.

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

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

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

IHS Markit Debt-to-EBITDA Calculation

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

IHS Markit's Debt-to-EBITDA for the fiscal year that ended in Nov. 2021 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(802.8	+	4154.6)	/	2148.2
	=	2.31

IHS Markit's annualized Debt-to-EBITDA for the quarter that ended in Nov. 2021 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(802.8	+	4154.6)	/	3604
	=	1.38

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 (Nov. 2021) EBITDA data.

IHS Markit (NYSE:INFO) 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.

IHS Markit Debt-to-EBITDA Related Terms

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

IHS Markit (IHS Markit) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » IHS Markit Ltd (NYSE:INFO) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

N/A

Address

25 Ropemaker Street, 4th Floor, Ropemaker Place, London, GBR, EC2Y 9LY

Website

https://www.ihsmarkit.com

IHS Markit is a leading provider of data and analytics to corporate and sovereign clients across a wide variety of industries. Financial markets accounted for 42% of fiscal 2020 revenue, transportation 27%, resources (energy and chemicals) 20%, and CMS (consolidated markets) 11%. Approximately 60% of fiscal 2020 revenue came from the United States. IHS Markit has approximately 16,000 employees worldwide. About 74% of fiscal 2020 revenue was recurring and fixed, 14% recurring and variable, and 12% non-recurring. S&P Global has offered to acquire IHS Markit, with holders of the target firm set to receive 0.2838 shares of the combined entity (a little less than one third of the total), in a deal valued at $44 billion upon announcement.