Reliance Worldwide (ASX:RWC) Debt-to-EBITDA

: 2.31 (As of Dec. 2023)

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

Reliance Worldwide's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$25 Mil. Reliance Worldwide's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$755 Mil. Reliance Worldwide's annualized EBITDA for the quarter that ended in Dec. 2023 was A$337 Mil. Reliance Worldwide's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 2.31.

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

ASX:RWC' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.7 Med: 2.24 Max: 4.89
Current: 2.16

During the past 7 years, the highest Debt-to-EBITDA Ratio of Reliance Worldwide was 4.89. The lowest was 0.70. And the median was 2.24.

ASX:RWC's Debt-to-EBITDA is ranked better than
52.45% of 1304 companies
in the Construction industry
Industry Median: 2.345 vs ASX:RWC: 2.16

Reliance Worldwide Debt-to-EBITDA Historical Data

The historical data trend for Reliance Worldwide'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.

Array ( [0] => - [1] => - [2] => 2.04 [3] => 2.30 [4] => 0.70 [5] => 2.72 [6] => 2.04 )

Reliance Worldwide Annual Data

Trend

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Debt-to-EBITDA

2.04

2.30

0.70

2.72

2.04

Reliance Worldwide Semi-Annual Data
	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Debt-to-EBITDA											2.80	2.65	2.35	2.15	2.31

Competitive Comparison

For the Building Products & Equipment subindustry, Reliance Worldwide'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.

Reliance Worldwide Debt-to-EBITDA Distribution

For the Construction industry and Industrials sector, Reliance Worldwide's Debt-to-EBITDA distribution charts can be found below:

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

Reliance Worldwide Debt-to-EBITDA Calculation

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

Reliance Worldwide'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
	=	(23.034	+	806.926)	/	406.322
	=	2.04

Reliance Worldwide'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
	=	(24.727	+	755.213)	/	337.052
	=	2.31

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.

Reliance Worldwide (ASX:RWC) 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.

Reliance Worldwide Debt-to-EBITDA Related Terms

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

Reliance Worldwide (ASX:RWC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Reliance Worldwide Corp Ltd (ASX:RWC) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

RLLWF:USA 0EU:Germany

Address

140 William Street, Level 26, Melbourne, VIC, AUS, 3000

Website

https://www.rwc.com

Reliance Worldwide designs, manufactures, and supplies branded plumbing products which are sold across North America, Asia-Pacific, and Europe. The company focuses on push-to-connect plumbing products, including fitting, pipes and valves, under its brands SharkBite, JG Speedfit, and EvoPex. Reliance's products are used in residential and commercial applications for the residential renovation, maintenance, and home improvement end-markets. Reliance sells around 45% of its products to plumbing wholesalers and merchants, 35% to hardware and home improvement retailers (including Home Depot, Lowe's, and Reece) and 20% to original equipment manufacturers of hot water systems.

Reliance Worldwide (ASX:RWC) Headlines

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