MKKGY (Merck KGaA) Debt-to-EBITDA : 1.80 (As of Sep. 2024)

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What is Merck KGaA Debt-to-EBITDA?

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

Merck KGaA's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was $3,893 Mil. Merck KGaA's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was $8,750 Mil. Merck KGaA's annualized EBITDA for the quarter that ended in Sep. 2024 was $7,019 Mil. Merck KGaA's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2024 was 1.80.

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

MKKGY' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.59 Med: 2.45 Max: 4.04
Current: 1.98

During the past 13 years, the highest Debt-to-EBITDA Ratio of Merck KGaA was 4.04. The lowest was 1.59. And the median was 2.45.

MKKGY's Debt-to-EBITDA is ranked worse than
54.88% of 656 companies
in the Drug Manufacturers industry
Industry Median: 1.67 vs MKKGY: 1.98

Merck KGaA Debt-to-EBITDA Historical Data

The historical data trend for Merck KGaA'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.

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Merck KGaA Debt-to-EBITDA Chart

Merck KGaA Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

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3.16

2.43

1.81

1.59

1.74

Merck KGaA Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Debt-to-EBITDA	Get a 7-Day Free Trial															1.88	2.03	1.74	1.75	1.80

Competitive Comparison of Merck KGaA's Debt-to-EBITDA

For the Drug Manufacturers - Specialty & Generic subindustry, Merck KGaA'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.

Merck KGaA's Debt-to-EBITDA Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Merck KGaA's Debt-to-EBITDA distribution charts can be found below:

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

Merck KGaA Debt-to-EBITDA Calculation

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

Merck KGaA's Debt-to-EBITDA for the fiscal year 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
	=	(681.57	+	10075.245)	/	6199.564
	=	1.74

Merck KGaA's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2024 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(3893.452	+	8750.277)	/	7018.868
	=	1.80

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 (Sep. 2024) EBITDA data.

Merck KGaA (OTCPK:MKKGY) 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.

Merck KGaA Debt-to-EBITDA Related Terms

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

Merck KGaA Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Merck KGaA (OTCPK:MKKGY) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

MKGAF:USA MRK1:Mexico 1MRK:Italy MRKd:UK 0O14:UK MRK:Germany MRK:Bulgaria

Address

Frankfurter Strasse 250, Darmstadt, HE, DEU, 64293

Website

https://www.emdgroup.com

Merck KGaA operates in three main segments: life sciences, performance materials, and healthcare. The life sciences segment (44% of 2023 sales) primarily provides laboratory consumables and services to researchers in academia and applied fields, including the biopharmaceutical industry. In the healthcare segment (38%), Merck develops, manufactures, and sells branded pharmaceuticals with significant therapeutic concentrations in oncology, multiple sclerosis, and fertility. In its electronics segment (17%), the company offers specialty materials to manufacture a variety of products, such as semiconductors, flat-screen televisions, automobiles, and cosmetics. In 1995, the E. Merck KG family publicly sold part of the company, resulting in the current 30% public ownership of the firm.