REI Agro (LSE:REAA) Debt-to-EBITDA : 10.64 (As of Mar. 2014)

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What is REI Agro Debt-to-EBITDA?

REI Agro LSE:REAA Debt-to-EBITDA is 10.64 as of Mar. 2014.

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

REI Agro's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2014 was $940 Mil. REI Agro's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2014 was $109 Mil. REI Agro's annualized EBITDA for the quarter that ended in Mar. 2014 was $99 Mil. REI Agro's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2014 was 10.64.

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 REI Agro's Debt-to-EBITDA or its related term are showing as below:

LSE:REAA's Debt-to-EBITDA is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 2.105
* Ranked among companies with meaningful Debt-to-EBITDA only.

REI Agro  (LSE:REAA) 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.


REI Agro Debt-to-EBITDA Related Terms


REI Agro Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for REI Agro'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.

REI Agro Debt-to-EBITDA Chart

REI Agro Annual Data
Trend Mar05 Mar06 Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.44 4.90 4.95 3.96 5.26

REI Agro Quarterly Data
Mar04 Mar05 Mar06 Mar07 Mar08 Mar09 Mar10 Mar11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Dec13 Mar14
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 0.00 2.79 0.00 0.00 10.64

REI Agro Debt-to-EBITDA Competitor Comparison

For the Packaged Foods subindustry, REI Agro'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.


REI Agro Debt-to-EBITDA vs Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, REI Agro's Debt-to-EBITDA distribution charts can be found below:

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



REI Agro Debt-to-EBITDA Calculation

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

REI Agro's Debt-to-EBITDA for the fiscal year that ended in Mar. 2014 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(939.612 + 109.043) / 199.297
=5.26

REI Agro's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2014 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(939.612 + 109.043) / 98.532
=10.64

* 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 four times the quarterly (Mar. 2014) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 10.64 mean?
REI Agro (LSE:REAA) has a Debt-to-EBITDA of 10.64 as of Mar. 2014. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on REI Agro.
Is REI Agro's Debt-to-EBITDA too high?
REI Agro's current Debt-to-EBITDA is 10.64. The Consumer Packaged Goods industry median Debt-to-EBITDA is 2.11. REI Agro's value of 10.64 is 405.5% above this industry median.
How does REI Agro's Debt-to-EBITDA compare to competitors?
REI Agro's Debt-to-EBITDA of 10.64 can be compared against companies in the Consumer Packaged Goods industry. The industry median Debt-to-EBITDA is 2.11. REI Agro's value of 10.64 is 405.5% above 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 Consumer Packaged Goods company?
The median Debt-to-EBITDA among Consumer Packaged Goods companies is 2.11, based on 1,554 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. REI Agro's current Debt-to-EBITDA of 10.64 is 405.5% above 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 REI Agro. For the Consumer Packaged Goods industry, the median Debt-to-EBITDA is 2.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. REI Agro's current Debt-to-EBITDA is 10.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is REI Agro stock overvalued right now?
REI Agro (LSE:REAA) has a current Debt-to-EBITDA of 10.64. The current Debt-to-EBITDA is 10.64 and 405.5% above the Consumer Packaged Goods industry median of 2.11. 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 REI Agro (LSE:REAA), the current Debt-to-EBITDA is 10.64 as of Mar. 2014. 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.

REI Agro Business Description

Address 58A/1, Sainik Farm, Saket, New Delhi, IND, 110062
REI Agro Ltd is engaged in processing basmati rice and market its products under the brand name Raindrops. The company operates in two business segments - the business of processing, trading, and marketing of agro products and generation of power through Wind farm generators. The products of the company are sold both in domestic and international markets.