Speedy Hire (LSE:SDY) Debt-to-EBITDA : 1.89 (As of Sep. 2023)

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What is Speedy Hire Debt-to-EBITDA?

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

Speedy Hire's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was £20.8 Mil. Speedy Hire's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was £157.2 Mil. Speedy Hire's annualized EBITDA for the quarter that ended in Sep. 2023 was £94.2 Mil. Speedy Hire's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 was 1.89.

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 Speedy Hire's Debt-to-EBITDA or its related term are showing as below:

LSE:SDY' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -16.46 Med: 1.6 Max: 2.42
Current: 2.33

During the past 13 years, the highest Debt-to-EBITDA Ratio of Speedy Hire was 2.42. The lowest was -16.46. And the median was 1.60.

LSE:SDY's Debt-to-EBITDA is ranked worse than
56.02% of 830 companies
in the Business Services industry
Industry Median: 1.835 vs LSE:SDY: 2.33

Speedy Hire Debt-to-EBITDA Historical Data

The historical data trend for Speedy Hire'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.

Speedy Hire Debt-to-EBITDA Chart

Speedy Hire Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Debt-to-EBITDA

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1.75

1.87

1.32

1.44

2.22

Speedy Hire Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Debt-to-EBITDA	Get a 7-Day Free Trial															1.25	1.42	1.64	3.08	1.89

Competitive Comparison of Speedy Hire's Debt-to-EBITDA

For the Rental & Leasing Services subindustry, Speedy Hire'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.

Speedy Hire's Debt-to-EBITDA Distribution in the Business Services Industry

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

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

Speedy Hire Debt-to-EBITDA Calculation

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

Speedy Hire's Debt-to-EBITDA for the fiscal year that ended in Mar. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(23.4	+	156.2)	/	81.1
	=	2.21

Speedy Hire's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(20.8	+	157.2)	/	94.2
	=	1.89

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 (Sep. 2023) EBITDA data.

Speedy Hire (LSE:SDY) 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.

Speedy Hire Debt-to-EBITDA Related Terms

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

Speedy Hire (LSE:SDY) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Speedy Hire PLC (LSE:SDY) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

SDYl:UK SDY.GB:UK 5HN:Germany

Address

Chase House, 16 The Parks, Newton-le-Willows, Merseyside, GBR, WA12 0JQ

Website

https://www.speedyservices.com

Speedy Hire PLC is a UK-based company engaged in the provision of equipment for hire and sale and associated services to construction, infrastructure, industry, and related industries. It delivers asset management with tailored services and a continued commitment to relationship management. It generates revenue from Hire and related activities followed by services provided. The company's geographical segments are the United Kingdom and Ireland, of which the majority of its revenue comes from the United Kingdom.