Severn Trent (STU:SVT1) Debt-to-EBITDA : 7.99 (As of Mar. 2024)

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What is Severn Trent Debt-to-EBITDA?

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

Severn Trent's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was €79 Mil. Severn Trent's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was €9,580 Mil. Severn Trent's annualized EBITDA for the quarter that ended in Mar. 2024 was €1,210 Mil. Severn Trent's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 was 7.99.

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

STU:SVT1' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 5.45 Med: 6.56 Max: 8
Current: 8

During the past 13 years, the highest Debt-to-EBITDA Ratio of Severn Trent was 8.00. The lowest was 5.45. And the median was 6.56.

STU:SVT1's Debt-to-EBITDA is ranked worse than
82.8% of 465 companies
in the Utilities - Regulated industry
Industry Median: 3.66 vs STU:SVT1: 8.00

Severn Trent Debt-to-EBITDA Historical Data

The historical data trend for Severn Trent'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.

Severn Trent Debt-to-EBITDA Chart

Severn Trent Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Debt-to-EBITDA

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6.97

7.42

6.75

7.09

8.00

Severn Trent Semi-Annual Data
	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24
Debt-to-EBITDA	Get a 7-Day Free Trial															6.71	6.60	7.44	7.59	7.99

Competitive Comparison of Severn Trent's Debt-to-EBITDA

For the Utilities - Regulated Water subindustry, Severn Trent'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.

Severn Trent's Debt-to-EBITDA Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Severn Trent's Debt-to-EBITDA distribution charts can be found below:

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

Severn Trent Debt-to-EBITDA Calculation

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

Severn Trent's Debt-to-EBITDA for the fiscal year 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
	=	(79.375	+	9580.274)	/	1207.924
	=	8.00

Severn Trent'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
	=	(79.375	+	9580.274)	/	1209.678
	=	7.99

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 (Mar. 2024) EBITDA data.

Severn Trent (STU:SVT1) 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.

Severn Trent Debt-to-EBITDA Related Terms

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

Severn Trent (STU:SVT1) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Severn Trent PLC (STU:SVT1) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

SVTRF:USA STRNY:USA SVTl:UK SVT:UK

Address

2 St John’s Street, Severn Trent Centre, Coventry, GBR, CV1 2LZ

Website

https://www.severntrent.com

Severn Trent PLC is a United Kingdom-based water utilities company. The company mainly operates in the U.K., but also in the United States and other countries in Europe. The company derives the majority of its revenue from its regulated water and wastewater segment, which supplies water and conducts sewage and environmental services. The company also operates a business services segment that is involved with renewable energy operations. The company provides contract services to industrial and municipal clients to develop water treatment facilities and networks. The firm generates its renewable energy by using hydropower, wind power, and solar power.

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