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Famous Brands (JSE:FBR) Debt-to-EBITDA : 1.69 (As of Feb. 2024)


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What is Famous Brands Debt-to-EBITDA?

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

Famous Brands's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2024 was R202 Mil. Famous Brands's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2024 was R1,321 Mil. Famous Brands's annualized EBITDA for the quarter that ended in Feb. 2024 was R900 Mil. Famous Brands's annualized Debt-to-EBITDA for the quarter that ended in Feb. 2024 was 1.69.

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

JSE:FBR' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.03   Med: 2.07   Max: 10
Current: 1.82

During the past 13 years, the highest Debt-to-EBITDA Ratio of Famous Brands was 10.00. The lowest was 0.03. And the median was 2.07.

JSE:FBR's Debt-to-EBITDA is ranked better than
66.07% of 280 companies
in the Restaurants industry
Industry Median: 2.97 vs JSE:FBR: 1.82

Famous Brands Debt-to-EBITDA Historical Data

The historical data trend for Famous Brands'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.

Famous Brands Debt-to-EBITDA Chart

Famous Brands Annual Data
Trend Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.39 4.31 1.75 1.44 1.45

Famous Brands Semi-Annual Data
Aug14 Feb15 Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24
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 1.79 1.57 1.68 2.05 1.69

Competitive Comparison of Famous Brands's Debt-to-EBITDA

For the Restaurants subindustry, Famous Brands'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.


Famous Brands's Debt-to-EBITDA Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Famous Brands's Debt-to-EBITDA distribution charts can be found below:

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



Famous Brands Debt-to-EBITDA Calculation

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

Famous Brands's Debt-to-EBITDA for the fiscal year that ended in Feb. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(202.111 + 1321.031) / 1047.707
=1.45

Famous Brands's annualized Debt-to-EBITDA for the quarter that ended in Feb. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(202.111 + 1321.031) / 900.134
=1.69

* 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 (Feb. 2024) EBITDA data.


Famous Brands  (JSE:FBR) 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.


Famous Brands Debt-to-EBITDA Related Terms

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


Famous Brands (JSE:FBR) Business Description

Traded in Other Exchanges
N/A
Address
478 James Crescent, P.O. Box 2884, Halfway House, Midrand, GT, ZAF, 1685
Famous Brands Ltd owns a portfolio of roughly 30 restaurant chains in Africa and the United Kingdom. Its biggest brands include Steers, Wimpy, Debonairs Pizza, Fishaways, Mr Biggs, and Mugg & Bean. Franchisees operate all of the company's restaurants. Most of the company's revenue comes from its supply chain segment, which is responsible for manufacturing restaurant items and delivering the products to the company's franchisees and other customers. More than three fourths of Famous Brands' restaurants are in South Africa.