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AB Cotspin India (NSE:ABCOTS) Debt-to-EBITDA : 3.99 (As of Sep. 2023)


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What is AB Cotspin India Debt-to-EBITDA?

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

AB Cotspin India's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was ₹404 Mil. AB Cotspin India's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was ₹521 Mil. AB Cotspin India's annualized EBITDA for the quarter that ended in Sep. 2023 was ₹232 Mil. AB Cotspin India's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 was 3.99.

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 AB Cotspin India's Debt-to-EBITDA or its related term are showing as below:

NSE:ABCOTS' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 2.19   Med: 4.49   Max: 9.05
Current: 4.83

During the past 5 years, the highest Debt-to-EBITDA Ratio of AB Cotspin India was 9.05. The lowest was 2.19. And the median was 4.49.

NSE:ABCOTS's Debt-to-EBITDA is ranked worse than
69.37% of 813 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 2.72 vs NSE:ABCOTS: 4.83

AB Cotspin India Debt-to-EBITDA Historical Data

The historical data trend for AB Cotspin India'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.

AB Cotspin India Debt-to-EBITDA Chart

AB Cotspin India Annual Data
Trend Mar19 Mar20 Mar21 Mar22 Mar23
Debt-to-EBITDA
4.49 5.01 3.59 2.19 9.05

AB Cotspin India Semi-Annual Data
Mar19 Mar20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
Debt-to-EBITDA Get a 7-Day Free Trial - 4.03 8.69 6.56 3.99

Competitive Comparison of AB Cotspin India's Debt-to-EBITDA

For the Textile Manufacturing subindustry, AB Cotspin India'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.


AB Cotspin India's Debt-to-EBITDA Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, AB Cotspin India's Debt-to-EBITDA distribution charts can be found below:

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



AB Cotspin India Debt-to-EBITDA Calculation

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

AB Cotspin India'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
=(459.613 + 529.476) / 109.329
=9.05

AB Cotspin India'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
=(403.85 + 520.772) / 231.726
=3.99

* 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 two times the quarterly (Sep. 2023) EBITDA data.


AB Cotspin India  (NSE:ABCOTS) 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.


AB Cotspin India Debt-to-EBITDA Related Terms

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


AB Cotspin India Business Description

Traded in Other Exchanges
N/A
Address
Goniana Road, NH-54, Near lake-3, Bathinda, PB, IND, 151001
AB Cotspin India Ltd has one segment of activity namely Cotton Ginning. Revenue is generated from the sale of products. The company is engaged in manufacturing cotton yarns & fabrics both combed and karded, knitted fabric, cottonseed oil and oilcake catering to the requirements of niche customers who in turn are engaged in making garments for their international buyers.

AB Cotspin India Headlines

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