Kier Group (LSE:KIE) Debt-to-EBITDA : 2.88 (As of Dec. 2023)

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What is Kier Group Debt-to-EBITDA?

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

Kier Group's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was £35 Mil. Kier Group's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was £455 Mil. Kier Group's annualized EBITDA for the quarter that ended in Dec. 2023 was £170 Mil. Kier Group's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 2.88.

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 Kier Group's Debt-to-EBITDA or its related term are showing as below:

LSE:KIE' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -9.15 Med: 4.28 Max: 10.8
Current: 2.82

During the past 13 years, the highest Debt-to-EBITDA Ratio of Kier Group was 10.80. The lowest was -9.15. And the median was 4.28.

LSE:KIE's Debt-to-EBITDA is ranked worse than
55.65% of 1310 companies
in the Construction industry
Industry Median: 2.305 vs LSE:KIE: 2.82

Kier Group Debt-to-EBITDA Historical Data

The historical data trend for Kier Group'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.

Kier Group Debt-to-EBITDA Chart

Kier Group Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Debt-to-EBITDA

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-3.41

-9.15

4.73

4.27

2.88

Kier Group Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial															4.47	5.69	3.83	2.83	2.88

Competitive Comparison of Kier Group's Debt-to-EBITDA

For the Engineering & Construction subindustry, Kier Group'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.

Kier Group's Debt-to-EBITDA Distribution in the Construction Industry

For the Construction industry and Industrials sector, Kier Group's Debt-to-EBITDA distribution charts can be found below:

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

Kier Group Debt-to-EBITDA Calculation

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

Kier Group's Debt-to-EBITDA for the fiscal year that ended in Jun. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(36.2	+	465.5)	/	174.1
	=	2.88

Kier Group'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
	=	(35.3	+	455.1)	/	170.2
	=	2.88

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.

Kier Group (LSE:KIE) 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.

Kier Group Debt-to-EBITDA Related Terms

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

Kier Group (LSE:KIE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Kier Group PLC (LSE:KIE) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

KIEl:UK 10I:Germany

Address

Optimum House, 2nd Floor, Clippers Quay, Salford, GBR, M50 3XP

Website

http://www.kier.co.uk

Kier Group PLC is a construction, services, and property company that builds and maintains projects for various sectors. Its design and engineering capabilities meet the specifications for public and private customers. The construction segment works in both the public and private sectors through local bases and offers national coverage for its clients. The infrastructure services segment is focused on four main markets: highways, utilities, infrastructure, and rail. The property segment, which invests and develops schemes and sites across the United Kingdom and the last segment is corporate segment. Kier plans to divest from this segment to free up capital for the other segments. The U.K. accounts majority of its revenue, with the rest split among the Americas, Middle East, and Far East.