Deere (LTS:0R2P) Debt-to-EBITDA : 5.61 (As of Oct. 2024)

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What is Deere Debt-to-EBITDA?

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

Deere's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Oct. 2024 was $21,964 Mil. Deere's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Oct. 2024 was $43,229 Mil. Deere's annualized EBITDA for the quarter that ended in Oct. 2024 was $11,632 Mil. Deere's annualized Debt-to-EBITDA for the quarter that ended in Oct. 2024 was 5.60.

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

LTS:0R2P' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 3.65 Med: 5.93 Max: 7.83
Current: 4.44

During the past 13 years, the highest Debt-to-EBITDA Ratio of Deere was 7.83. The lowest was 3.65. And the median was 5.93.

LTS:0R2P's Debt-to-EBITDA is ranked worse than
76.97% of 165 companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 1.8 vs LTS:0R2P: 4.44

Deere Debt-to-EBITDA Historical Data

The historical data trend for Deere'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.

Deere Debt-to-EBITDA Chart

Deere Annual Data

Trend

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

Oct24

Debt-to-EBITDA

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6.39

4.57

4.32

3.65

4.44

Deere Quarterly Data
	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24	Oct24
Debt-to-EBITDA	Get a 7-Day Free Trial															3.68	4.47	3.66	4.39	5.61

Competitive Comparison of Deere's Debt-to-EBITDA

For the Farm & Heavy Construction Machinery subindustry, Deere'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.

Deere's Debt-to-EBITDA Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Deere's Debt-to-EBITDA distribution charts can be found below:

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

Deere Debt-to-EBITDA Calculation

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

Deere's Debt-to-EBITDA for the fiscal year that ended in Oct. 2024 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(21964	+	43229)	/	14672
	=	4.44

Deere's annualized Debt-to-EBITDA for the quarter that ended in Oct. 2024 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(21964	+	43229)	/	11632
	=	5.60

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 (Oct. 2024) EBITDA data.

Deere (LTS:0R2P) 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.

Deere Debt-to-EBITDA Related Terms

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

Deere Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Farm & Heavy Construction Machinery » Deere & Co (LTS:0R2P) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

DE:USA DE:Mexico 1DE:Italy DCO0:Germany DCO:Germany DCO:Germany DCO:Germany DCO:Germany DEER:Canada DEEC34:Brazil DEER:Austria DE:Argentina

Address

One John Deere Place, Moline, IL, USA, 61265

Website

https://www.deere.com

Deere is the world's leading manufacturer of agricultural equipment, producing some of the most recognizable machines in the heavy machinery industry in their green and yellow livery. The company is divided into four reportable segments: production and precision agriculture, small agriculture and turf, construction and forestry, and John Deere Capital. Its products are available through an extensive dealer network, which includes over 2,000 dealer locations in North America and approximately 3,700 locations globally. John Deere Capital provides retail financing for machinery to its customers, in addition to wholesale financing for dealers, which increases the likelihood of Deere product sales.

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