Link Administration Holdings (ASX:LNK) Debt-to-EBITDA : 4.61 (As of Dec. 2023)

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What is Link Administration Holdings Debt-to-EBITDA?

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

Link Administration Holdings's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$33.0 Mil. Link Administration Holdings's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$1,098.6 Mil. Link Administration Holdings's annualized EBITDA for the quarter that ended in Dec. 2023 was A$245.7 Mil. Link Administration Holdings's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 4.61.

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 Link Administration Holdings's Debt-to-EBITDA or its related term are showing as below:

ASX:LNK' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.59 Med: 7.23 Max: 23.43
Current: 2.23

During the past 8 years, the highest Debt-to-EBITDA Ratio of Link Administration Holdings was 23.43. The lowest was 1.59. And the median was 7.23.

ASX:LNK's Debt-to-EBITDA is ranked worse than
57.89% of 418 companies
in the Capital Markets industry
Industry Median: 1.585 vs ASX:LNK: 2.23

Link Administration Holdings Debt-to-EBITDA Historical Data

The historical data trend for Link Administration Holdings'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.

Link Administration Holdings Debt-to-EBITDA Chart

Link Administration Holdings Annual Data

Trend

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Debt-to-EBITDA

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2.03

13.21

23.43

11.73

14.14

Link Administration Holdings Semi-Annual Data
	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												323.14	5.98	-1.83	1.49	4.61

Competitive Comparison of Link Administration Holdings's Debt-to-EBITDA

For the Capital Markets subindustry, Link Administration Holdings'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.

Link Administration Holdings's Debt-to-EBITDA Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Link Administration Holdings's Debt-to-EBITDA distribution charts can be found below:

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

Link Administration Holdings Debt-to-EBITDA Calculation

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

Link Administration Holdings'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
	=	(34.238	+	1105.708)	/	80.636
	=	14.14

Link Administration Holdings'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
	=	(32.964	+	1098.638)	/	245.652
	=	4.61

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.

Link Administration Holdings (ASX:LNK) 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.

Link Administration Holdings Debt-to-EBITDA Related Terms

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

Link Administration Holdings (ASX:LNK) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Link Administration Holdings Ltd (ASX:LNK) » Definitions » Debt-to-EBITDA

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LKADF:USA

Address

680 George Street, Level 12, Sydney, NSW, AUS, 2000

Website

https://www.linkgroup.com

Link derives its revenue primarily from providing administration services to the financial services sector in Australia, and the share registry and investment fund sectors in the U.K. The company is the largest provider of superannuation administration services and the second-largest provider of share registry services in Australia. Link's clients are usually contracted for between two and five years. The customers are relatively sticky, resulting in a high recurring revenue. The capital-light business model means cash flow is relatively strong.

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