RAK Ceramics (Bangladesh) (DHA:RAKCERAMIC) Debt-to-EBITDA

: 0.69 (As of Dec. 2023)

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

RAK Ceramics (Bangladesh)'s Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was BDT746 Mil. RAK Ceramics (Bangladesh)'s Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was BDT410 Mil. RAK Ceramics (Bangladesh)'s annualized EBITDA for the quarter that ended in Dec. 2023 was BDT1,672 Mil. RAK Ceramics (Bangladesh)'s annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 0.69.

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 RAK Ceramics (Bangladesh)'s Debt-to-EBITDA or its related term are showing as below:

DHA:RAKCERAMIC' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.09 Med: 0.29 Max: 0.87
Current: 0.87

During the past 13 years, the highest Debt-to-EBITDA Ratio of RAK Ceramics (Bangladesh) was 0.87. The lowest was 0.09. And the median was 0.29.

DHA:RAKCERAMIC's Debt-to-EBITDA is ranked better than
74.45% of 1307 companies
in the Construction industry
Industry Median: 2.34 vs DHA:RAKCERAMIC: 0.87

RAK Ceramics (Bangladesh) Debt-to-EBITDA Historical Data

The historical data trend for RAK Ceramics (Bangladesh)'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.

RAK Ceramics (Bangladesh) Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

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0.09

0.15

0.27

0.29

0.87

RAK Ceramics (Bangladesh) Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial															0.35	0.21	0.52	0.54	0.69

Competitive Comparison

For the Building Products & Equipment subindustry, RAK Ceramics (Bangladesh)'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.

RAK Ceramics (Bangladesh) Debt-to-EBITDA Distribution

For the Construction industry and Industrials sector, RAK Ceramics (Bangladesh)'s Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where RAK Ceramics (Bangladesh)'s Debt-to-EBITDA falls into.

RAK Ceramics (Bangladesh) Debt-to-EBITDA Calculation

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

RAK Ceramics (Bangladesh)'s Debt-to-EBITDA for the fiscal year 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
	=	(745.827	+	409.559)	/	1335.894
	=	0.86

RAK Ceramics (Bangladesh)'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
	=	(745.827	+	409.559)	/	1671.512
	=	0.69

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 four times the quarterly (Dec. 2023) EBITDA data.

RAK Ceramics (Bangladesh) (DHA:RAKCERAMIC) 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.

RAK Ceramics (Bangladesh) Debt-to-EBITDA Related Terms

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

RAK Ceramics (Bangladesh) (DHA:RAKCERAMIC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » RAK Ceramics (Bangladesh) Ltd (DHA:RAKCERAMIC) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

N/A

Address

Plot 1/A Jasimuddin Avenue, RAK Tower, 7th, 8th & 9th Floors, Sector-3, Uttara Model Town, Dhaka, BGD, 1230

Website

https://www.rakceramics.com/bangladesh

RAK Ceramics (Bangladesh) Ltd is a tile and sanitary ware brand in Bangladesh. The core business of RAK Ceramics is to manufacture and sell ceramics and gres porcellanato (porcelain/ fully vitrified) tiles, bathroom sets and all types of sanitary ware. The operating segments of the group are Ceramic and sanitary ware, Power and Security and services, Substantial revenue for the group is derived from the Ceramics and sanitary ware segment.

RAK Ceramics (Bangladesh) (DHA:RAKCERAMIC) Headlines

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