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Vulcan Steel (ASX:VSL) Debt-to-EBITDA

: 3.61 (As of Dec. 2023)
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Debt-to-EBITDA measures a company's ability to pay off its debt.

Vulcan Steel's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$22 Mil. Vulcan Steel's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$528 Mil. Vulcan Steel's annualized EBITDA for the quarter that ended in Dec. 2023 was A$152 Mil. Vulcan Steel's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 3.61.

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

ASX:VSL' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.94   Med: 2.66   Max: 3.75
Current: 3.75

During the past 3 years, the highest Debt-to-EBITDA Ratio of Vulcan Steel was 3.75. The lowest was 1.94. And the median was 2.66.

ASX:VSL's Debt-to-EBITDA is ranked worse than
62.88% of 493 companies
in the Steel industry
Industry Median: 2.63 vs ASX:VSL: 3.75

Vulcan Steel Debt-to-EBITDA Historical Data

The historical data trend for Vulcan Steel'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.

Vulcan Steel Annual Data
Trend Jun21 Jun22 Jun23
Debt-to-EBITDA
N/A 1.94 3.38

Vulcan Steel Semi-Annual Data
Dec21 Jun22 Dec22 Jun23 Dec23
Debt-to-EBITDA 1.60 1.87 2.93 4.21 3.61
Competitive Comparison

For the Steel subindustry, Vulcan Steel'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.

Vulcan Steel Debt-to-EBITDA Distribution

For the Steel industry and Basic Materials sector, Vulcan Steel's Debt-to-EBITDA distribution charts can be found below:

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


Vulcan Steel Debt-to-EBITDA Calculation

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

Vulcan Steel'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
=(20.718 + 573.208) / 175.864
=3.38

Vulcan Steel'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
=(22.128 + 527.979) / 152.462
=3.61

* 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.

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.

Vulcan Steel  (ASX:VSL) 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.

Vulcan Steel Debt-to-EBITDA Related Terms

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

Vulcan Steel (ASX:VSL) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Vulcan Steel Ltd (ASX:VSL) » Definitions » Debt-to-EBITDA
Comparable Companies
ASX:MGX ASX:BCI ASX:FEX ASX:BIS ASX:IRD ASX:TI1 ASX:GWR ASX:EQX ASX:M4M ASX:PLG NUE XKRX:005490 BOM:500228 TSE:5401 SHSE:600019 XAMS:MT STLD NSE:TATASTEEL RS MIC:CHMF
Traded in Other Exchanges
VSL:New Zealand
Address
29 Neales Road, East Tamaki, Auckland, NTL, NZL, 2013
Website
https://www.vulcan.co
Vulcan Steel Ltd is a metals distributor and processor. Its products include Steel, Stainless Steel, Engineering steel, Plate processing, and Coil processing. The company has two operating segments namely, Steel business across New Zealand and Australia which includes Steel distribution, Plate processing, and Coil processing; and Metals business across New , which includes Stainless Steel, Engineering Steel and Aluminium.

Vulcan Steel (ASX:VSL) Headlines