Racing Force SpA (XPAR:ALRFG) Debt-to-EBITDA : 2.57 (As of Dec. 2023)

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What is Racing Force SpA Debt-to-EBITDA?

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

Racing Force SpA's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was €4.54 Mil. Racing Force SpA's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was €9.15 Mil. Racing Force SpA's annualized EBITDA for the quarter that ended in Dec. 2023 was €5.33 Mil. Racing Force SpA's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 2.57.

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

XPAR:ALRFG' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.48 Med: 2.06 Max: 5.04
Current: 1.49

During the past 4 years, the highest Debt-to-EBITDA Ratio of Racing Force SpA was 5.04. The lowest was 1.48. And the median was 2.06.

XPAR:ALRFG's Debt-to-EBITDA is ranked better than
66.61% of 629 companies
in the Travel & Leisure industry
Industry Median: 2.82 vs XPAR:ALRFG: 1.49

Racing Force SpA Debt-to-EBITDA Historical Data

The historical data trend for Racing Force 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.

Racing Force SpA Debt-to-EBITDA Chart

Racing Force SpA Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

5.04

2.64

1.48

1.49

Racing Force SpA Quarterly Data
	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial			2.75	0.50	2.11	0.42	2.57

Competitive Comparison of Racing Force SpA's Debt-to-EBITDA

For the Leisure subindustry, Racing Force 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.

Racing Force SpA's Debt-to-EBITDA Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Racing Force SpA's Debt-to-EBITDA distribution charts can be found below:

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

Racing Force SpA Debt-to-EBITDA Calculation

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

Racing Force 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
	=	(4.542	+	9.154)	/	9.177
	=	1.49

Racing Force SpA's annualized Debt-to-EBITDA for the quarter 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
	=	(4.542	+	9.154)	/	5.332
	=	2.57

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. 2023) EBITDA data.

Racing Force SpA (XPAR:ALRFG) 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.

Racing Force SpA Debt-to-EBITDA Related Terms

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

Racing Force SpA (XPAR:ALRFG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Racing Force SpA (XPAR:ALRFG) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

RFG:Italy

Address

via Bazzano 5, Ronco Scrivia, Genoa, ITA, 16019

Website

https://www.racingforce.com

Racing Force SpA is engaged in the field of design and manufacture of motorsport safety products. Its product range spans from suits, gloves, shoes, seats, harnesses, helmets, rollbars, racing nets, steering wheels, fire extinguisher systems, and intercoms, to other accessories strictly related to the motorsport industry.

Racing Force SpA (XPAR:ALRFG) Headlines

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