TIIAY (Telecom Italia SpA) Debt-to-EBITDA : 3.31 (As of Sep. 2024)

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What is Telecom Italia SpA Debt-to-EBITDA?

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

Telecom Italia SpA's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was $4,234 Mil. Telecom Italia SpA's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was $13,241 Mil. Telecom Italia SpA's annualized EBITDA for the quarter that ended in Sep. 2024 was $5,274 Mil. Telecom Italia SpA's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2024 was 3.31.

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 Telecom Italia SpA's Debt-to-EBITDA or its related term are showing as below:

TIIAY' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 2.63 Med: 4.7 Max: 27.68
Current: 2.63

During the past 13 years, the highest Debt-to-EBITDA Ratio of Telecom Italia SpA was 27.68. The lowest was 2.63. And the median was 4.70.

TIIAY's Debt-to-EBITDA is ranked worse than
52.83% of 318 companies
in the Telecommunication Services industry
Industry Median: 2.415 vs TIIAY: 2.63

Telecom Italia SpA Debt-to-EBITDA Historical Data

The historical data trend for Telecom Italia SpA'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.

Telecom Italia SpA Debt-to-EBITDA Chart

Telecom Italia SpA Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

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3.96

4.13

27.68

5.66

5.52

Telecom Italia SpA 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															4.92	5.25	4.61	4.04	3.31

Competitive Comparison of Telecom Italia SpA's Debt-to-EBITDA

For the Telecom Services subindustry, Telecom Italia SpA'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.

Telecom Italia SpA's Debt-to-EBITDA Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Telecom Italia SpA's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Telecom Italia SpA's Debt-to-EBITDA falls into.

Telecom Italia SpA Debt-to-EBITDA Calculation

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

Telecom Italia SpA'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
	=	(6814.613	+	27592.148)	/	6230.098
	=	5.52

Telecom Italia SpA'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
	=	(4234.184	+	13240.844)	/	5274.14
	=	3.31

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.

Telecom Italia SpA (OTCPK:TIIAY) 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.

Telecom Italia SpA Debt-to-EBITDA Related Terms

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

Telecom Italia SpA Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Telecom Italia SpA (OTCPK:TIIAY) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

TIAOF:USA TIAIY:USA TITR:Italy TIT:Italy TITm:UK 0H6I:UK 0GA3:UK TQIR:Germany TITR:Austria TIT:Austria

Address

Corso D\'Italia, 41, Roma, ITA, 00198

Website

https://www.telecomitalia.com

Telecom Italia is the incumbent telecommunications operator in Italy with more than 30% share in the Italian mobile market and 40% share in broadband. In the mobile market, it competes with Vodafone, Wind Tre, and Iliad. After the sale of its fixed network to KKR for EUR 18.8 billion, TIM will become a pure service provider. TIM also has a 20% wireless market share in Brazil and has started building a broadband network in the country, although its reach is very small compared with competitors Telefonica and America Movil.