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Construction Partners (STU:CQY) Debt-to-EBITDA : 4.48 (As of Mar. 2024)


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What is Construction Partners Debt-to-EBITDA?

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

Construction Partners's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was €19 Mil. Construction Partners's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was €409 Mil. Construction Partners's annualized EBITDA for the quarter that ended in Mar. 2024 was €96 Mil. Construction Partners's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 was 4.48.

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

STU:CQY' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.56   Med: 1.04   Max: 3.83
Current: 2.54

During the past 8 years, the highest Debt-to-EBITDA Ratio of Construction Partners was 3.83. The lowest was 0.56. And the median was 1.04.

STU:CQY's Debt-to-EBITDA is ranked worse than
53.28% of 1310 companies
in the Construction industry
Industry Median: 2.31 vs STU:CQY: 2.54

Construction Partners Debt-to-EBITDA Historical Data

The historical data trend for Construction Partners'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.

Construction Partners Debt-to-EBITDA Chart

Construction Partners Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Debt-to-EBITDA
Get a 7-Day Free Trial 0.56 1.05 2.76 3.83 2.41

Construction Partners Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.21 2.05 1.48 3.05 4.48

Competitive Comparison of Construction Partners's Debt-to-EBITDA

For the Engineering & Construction subindustry, Construction Partners'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.


Construction Partners's Debt-to-EBITDA Distribution in the Construction Industry

For the Construction industry and Industrials sector, Construction Partners's Debt-to-EBITDA distribution charts can be found below:

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



Construction Partners Debt-to-EBITDA Calculation

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

Construction Partners's Debt-to-EBITDA for the fiscal year 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
=(16.246 + 349.865) / 151.653
=2.41

Construction Partners's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(18.919 + 409.497) / 95.544
=4.48

* 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 four times the quarterly (Mar. 2024) EBITDA data.


Construction Partners  (STU:CQY) 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.


Construction Partners Debt-to-EBITDA Related Terms

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


Construction Partners (STU:CQY) Business Description

Traded in Other Exchanges
Address
290 Healthwest Drive, Suite 2, Dothan, AL, USA, 36303
Construction Partners Inc operates as an infrastructure and road construction company. It provides construction products and services to the public and private sectors. Its services cover the construction of highways, roads, bridges, airports, and commercial and residential sites. The company provides site development, paving, utility and drainage systems, as well as supplies hot mix asphalt.

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