Roots (TSX:ROOT) Debt-to-EBITDA : 1.05 (As of Jan. 2024)

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What is Roots Debt-to-EBITDA?

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

Roots's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was C$25.2 Mil. Roots's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was C$99.7 Mil. Roots's annualized EBITDA for the quarter that ended in Jan. 2024 was C$119.1 Mil. Roots's annualized Debt-to-EBITDA for the quarter that ended in Jan. 2024 was 1.05.

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

TSX:ROOT' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -87.96 Med: 2.76 Max: 3.72
Current: 2.98

During the past 9 years, the highest Debt-to-EBITDA Ratio of Roots was 3.72. The lowest was -87.96. And the median was 2.76.

TSX:ROOT's Debt-to-EBITDA is ranked worse than
54.29% of 840 companies
in the Retail - Cyclical industry
Industry Median: 2.675 vs TSX:ROOT: 2.98

Roots Debt-to-EBITDA Historical Data

The historical data trend for Roots'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.

Roots Debt-to-EBITDA Chart

Roots Annual Data

Trend

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Debt-to-EBITDA

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-13.81

2.76

2.14

2.90

2.98

Roots Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Debt-to-EBITDA	Get a 7-Day Free Trial															1.25	-33.58	13.43	3.24	1.05

Competitive Comparison of Roots's Debt-to-EBITDA

For the Apparel Retail subindustry, Roots'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.

Roots's Debt-to-EBITDA Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Roots's Debt-to-EBITDA distribution charts can be found below:

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

Roots Debt-to-EBITDA Calculation

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

Roots's Debt-to-EBITDA for the fiscal year that ended in Jan. 2024 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(25.17	+	99.712)	/	41.917
	=	2.98

Roots's annualized Debt-to-EBITDA for the quarter that ended in Jan. 2024 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(25.17	+	99.712)	/	119.052
	=	1.05

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 (Jan. 2024) EBITDA data.

Roots (TSX:ROOT) 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.

Roots Debt-to-EBITDA Related Terms

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

Roots (TSX:ROOT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Roots Corp (TSX:ROOT) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

RROTF:USA

Address

1400 Castlefield Avenue, Toronto, ON, CAN, M6B 4C4

Website

https://www.roots.com

Roots Corp provides a portfolio of apparel, leather goods, accessories, and footwear for men, women, and children under the Roots brand. Its merchandise includes genuine leather, such as jackets, bags, and luggage; kids & baby clothing; and leather, linens, towels, and accessories. The company operates through two segments: Direct-To-Consumer, which accounts for the majority of revenue, and Partners & Other. The DTC segment sells products through the company's corporate retail stores and e-commerce. The Partners & Other segment engage in the wholesale of Roots-branded products to the company's international operating partner, and it earns royalties on the retail sales of Roots-branded products. The company has operating stores in Canada, the United States, Taiwan, China, and Hong Kong.