SOBO (South Bow) Debt-to-EBITDA : 6.70 (As of Dec. 2024)

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What is South Bow Debt-to-EBITDA?

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

South Bow's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was $0 Mil. South Bow's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was $5,716 Mil. South Bow's annualized EBITDA for the quarter that ended in Dec. 2024 was $854 Mil. South Bow's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2024 was 6.70.

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

SOBO' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 5.43 Med: 5.62 Max: 12.21
Current: 12.21

During the past 2 years, the highest Debt-to-EBITDA Ratio of South Bow was 12.21. The lowest was 5.43. And the median was 5.62.

SOBO's Debt-to-EBITDA is ranked worse than
93.68% of 712 companies
in the Oil & Gas industry
Industry Median: 1.86 vs SOBO: 12.21

South Bow Debt-to-EBITDA Historical Data

The historical data trend for South Bow'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.

South Bow Debt-to-EBITDA Chart

South Bow Annual Data

Trend

Dec23

Dec24

Debt-to-EBITDA

5.82

5.43

South Bow Quarterly Data
	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Debt-to-EBITDA	Get a 7-Day Free Trial			4.91	N/A	N/A	9.76	6.70

Competitive Comparison of South Bow's Debt-to-EBITDA

For the Oil & Gas Midstream subindustry, South Bow'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.

South Bow's Debt-to-EBITDA Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, South Bow's Debt-to-EBITDA distribution charts can be found below:

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

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South Bow Debt-to-EBITDA Calculation

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

South Bow's Debt-to-EBITDA for the fiscal year that ended in Dec. 2024 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(0	+	5716)	/	1052
	=	5.43

South Bow's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2024 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(0	+	5716)	/	853.648
	=	6.70

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 (Dec. 2024) EBITDA data.

South Bow (NYSE:SOBO) 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.

South Bow Debt-to-EBITDA Related Terms

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

South Bow Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » South Bow Corp (NYSE:SOBO) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

SOBO:Canada

Address

707, 5 Street SW, Suite 900, Calgary, AB, CAN, T2P 1V8

Website

https://www.southbow.com

South Bow Corp is a energy infrastructure company. The company is engaged in constructing pipelines system safely transports liquids like crude oil, across Canadian provinces, U.S. states, and Gulf coasts. It has three reportable segments: Keystone Pipeline System, Marketing, and Intra-Alberta & Other. It derives maximum revenue from Keystone Pipeline System segment.