Challenger (ASX:CGFPB.PFD) Debt-to-EBITDA

: 7.59 (As of Dec. 2023)

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

Challenger's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$7,018.30 Mil. Challenger's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$51.30 Mil. Challenger's annualized EBITDA for the quarter that ended in Dec. 2023 was A$932.00 Mil. Challenger's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 7.59.

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

ASX:CGFPB.PFD' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -21.42 Med: 8.03 Max: 14.1
Current: 6.44

During the past 13 years, the highest Debt-to-EBITDA Ratio of Challenger was 14.10. The lowest was -21.42. And the median was 8.03.

ASX:CGFPB.PFD's Debt-to-EBITDA is ranked worse than
89.35% of 291 companies
in the Insurance industry
Industry Median: 1.49 vs ASX:CGFPB.PFD: 6.44

Challenger Debt-to-EBITDA Historical Data

The historical data trend for Challenger'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.

Challenger Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Debt-to-EBITDA

8.44

-21.42

5.46

14.10

6.07

Challenger Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Debt-to-EBITDA																5.02	-18.62	8.47	4.67	7.59

Competitive Comparison

For the Insurance - Life subindustry, Challenger'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.

Challenger Debt-to-EBITDA Distribution

For the Insurance industry and Financial Services sector, Challenger's Debt-to-EBITDA distribution charts can be found below:

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

Challenger Debt-to-EBITDA Calculation

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

Challenger's Debt-to-EBITDA for the fiscal year that ended in Jun. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(4492.1	+	1399.2)	/	970.5
	=	6.07

Challenger'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
	=	(7018.3	+	51.3)	/	932
	=	7.59

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 (Dec. 2023) EBITDA data.

Challenger (ASX:CGFPB.PFD) 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.

Challenger Debt-to-EBITDA Related Terms

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

Challenger (ASX:CGFPB.PFD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Challenger Ltd (ASX:CGFPB.PFD) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

CFIGF:USA CGFPC.PFD:Australia CGF:Australia

Address

5 Martin Place, Level 2, Sydney, NSW, AUS, 2000

Website

https://www.challenger.com.au

Challenger's core business is selling annuity products in the Australian retirement market and, since November 2016, selling Australian dollar-denominated annuities into Japan's large retirement market. The firm's annuity products provide investors guaranteed regular payments over an agreed term for an up-front lump sum investment and is designed primarily to protect investors from the longevity risk of outliving their savings. Challenger also operates a funds management business, Fidante Partners, which has minority stakes in several boutique global investment managers, and Challenger Investment Management, which primarily manages investments supporting its annuities business.

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