Insurance Australia Group (ASX:IAG) Debt-to-EBITDA

: 1.82 (As of Dec. 2023)

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

Insurance Australia Group's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$0 Mil. Insurance Australia Group's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$3,013 Mil. Insurance Australia Group's annualized EBITDA for the quarter that ended in Dec. 2023 was A$1,656 Mil. Insurance Australia Group's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 1.82.

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 Insurance Australia Group's Debt-to-EBITDA or its related term are showing as below:

ASX:IAG' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -77.94 Med: 1.35 Max: 3.2
Current: 1.8

During the past 13 years, the highest Debt-to-EBITDA Ratio of Insurance Australia Group was 3.20. The lowest was -77.94. And the median was 1.35.

ASX:IAG's Debt-to-EBITDA is ranked worse than
57.04% of 291 companies
in the Insurance industry
Industry Median: 1.49 vs ASX:IAG: 1.80

Insurance Australia Group Debt-to-EBITDA Historical Data

The historical data trend for Insurance Australia Group'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.

Insurance Australia Group Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Debt-to-EBITDA

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1.30

2.65

-77.94

3.20

1.57

Insurance Australia Group 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	Get a 7-Day Free Trial															3.31	3.13	1.73	1.55	1.82

Competitive Comparison

For the Insurance - Property & Casualty subindustry, Insurance Australia Group'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.

Insurance Australia Group Debt-to-EBITDA Distribution

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

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

Insurance Australia Group Debt-to-EBITDA Calculation

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

Insurance Australia Group'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
	=	(74	+	2562)	/	1684
	=	1.57

Insurance Australia Group'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
	=	(0	+	3013)	/	1656
	=	1.82

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.

Insurance Australia Group (ASX:IAG) 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.

Insurance Australia Group Debt-to-EBITDA Related Terms

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

Insurance Australia Group (ASX:IAG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Insurance Australia Group Ltd (ASX:IAG) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

IAUGY:USA IAUGF:USA NRM:Germany IAGPD.PFD:Australia

Address

Darling Park, 201 Sussex Street, Level 13, Tower Two, Sydney, NSW, AUS, 2000

Website

https://www.iag.com.au

Insurance Australia Group is the biggest domestic general insurer by gross written premium operating in Australia and New Zealand. The key general insurance markets in which the company operates are home and contents, motor vehicle and compulsory third-party, and short-tail commercial. Insurance Australia Group sells insurance under several brands, including NRMA, CGU, SGIO, SGIC, WFI, and Swann in Australia, and NZI, State, AMI, and Lumley in New Zealand.