KLMR (KLM Royal Dutch Airlines) Debt-to-EBITDA : 2.36 (As of Dec. 2018)

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What is KLM Royal Dutch Airlines Debt-to-EBITDA?

KLM Royal Dutch Airlines KLMR +25.00% Debt-to-EBITDA is 2.36 as of Dec. 2018.

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

KLM Royal Dutch Airlines's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2018 was $827 Mil. KLM Royal Dutch Airlines's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2018 was $4,458 Mil. KLM Royal Dutch Airlines's annualized EBITDA for the quarter that ended in Dec. 2018 was $2,241 Mil. KLM Royal Dutch Airlines's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2018 was 2.36.

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 KLM Royal Dutch Airlines's Debt-to-EBITDA or its related term are showing as below:

KLMR's Debt-to-EBITDA is not ranked *
in the Transportation industry.
Industry Median: 2.62
* Ranked among companies with meaningful Debt-to-EBITDA only.

KLM Royal Dutch Airlines  (OTCPK:KLMR) 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.


KLM Royal Dutch Airlines Debt-to-EBITDA Related Terms


KLM Royal Dutch Airlines Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for KLM Royal Dutch Airlines'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.

KLM Royal Dutch Airlines Debt-to-EBITDA Chart

KLM Royal Dutch Airlines Annual Data
Trend Mar04 Mar05 Mar06 Mar07 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.75 4.26 2.72 9.44 2.36

KLM Royal Dutch Airlines Semi-Annual Data
Mar94 Mar95 Mar96 Mar97 Mar98 Mar99 Mar00 Mar01 Mar02 Mar03 Mar04 Mar05 Mar06 Mar07 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
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 2.75 4.26 2.72 9.44 2.36

KLMR vs : Debt-to-EBITDA Comparison

For the Airlines subindustry, KLM Royal Dutch Airlines'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.


KLM Royal Dutch Airlines Debt-to-EBITDA vs Transportation Industry

For the Transportation industry and Industrials sector, KLM Royal Dutch Airlines's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where KLM Royal Dutch Airlines's Debt-to-EBITDA falls into.



KLM Royal Dutch Airlines Debt-to-EBITDA Calculation

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

KLM Royal Dutch Airlines's Debt-to-EBITDA for the fiscal year that ended in Dec. 2018 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(827.076 + 4458.476) / 2241.183
=2.36

KLM Royal Dutch Airlines's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2018 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(827.076 + 4458.476) / 2241.183
=2.36

* 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 one times the quarterly (Dec. 2018) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 2.36 mean?
KLM Royal Dutch Airlines (KLMR) has a Debt-to-EBITDA of 2.36 as of Dec. 2018. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on KLM Royal Dutch Airlines.
Is KLM Royal Dutch Airlines' Debt-to-EBITDA too high?
KLM Royal Dutch Airlines' current Debt-to-EBITDA is 2.36. The Transportation industry median Debt-to-EBITDA is 2.62. KLM Royal Dutch Airlines' value of 2.36 is 9.9% below this industry median.
How does KLM Royal Dutch Airlines' Debt-to-EBITDA compare to ?
KLM Royal Dutch Airlines' Debt-to-EBITDA of 2.36 can be compared against companies in the Transportation industry. The industry median Debt-to-EBITDA is 2.62. KLM Royal Dutch Airlines' value of 2.36 is 9.9% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Transportation company?
The median Debt-to-EBITDA among Transportation companies is 2.62, based on 865 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. KLM Royal Dutch Airlines's current Debt-to-EBITDA of 2.36 is 9.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on KLM Royal Dutch Airlines. For the Transportation industry, the median Debt-to-EBITDA is 2.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KLM Royal Dutch Airlines's current Debt-to-EBITDA is 2.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KLM Royal Dutch Airlines stock overvalued right now?
KLM Royal Dutch Airlines (KLMR) has a current Debt-to-EBITDA of 2.36. The current Debt-to-EBITDA is 2.36 and 9.9% below the Transportation industry median of 2.62. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For KLM Royal Dutch Airlines (KLMR), the current Debt-to-EBITDA is 2.36 as of Dec. 2018. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

KLM Royal Dutch Airlines Business Description

Comparable Companies
Address Amsterdamseweg 55, Amstelveen, NH, NLD, 1182 GP
KLM Royal Dutch Airlines is engaged in network activities, which include air transport of passengers and cargo activities, aircraft maintenance, leisure, and other activities linked to air transport. Its segments are: Network, which generates maximum revenue and includes transportation of passengers on scheduled flights, ancillary passenger revenues, SkyTeam alliance partnership arrangements, block-seat sales, transportation of freight, and sale of cargo capacity to third parties; Maintenance, which provides engine services, component services, and airframe maintenance to airlines and clients internationally; Leisure, which covers charter flights and low-cost scheduled flights operated by transavia.com; and Other segment. It generates maximum revenue from Europe and North Africa.