Inchcape (Inchcape) Debt-to-EBITDA : 2.17 (As of Dec. 2023)

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What is Inchcape Debt-to-EBITDA?

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

Inchcape's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $928 Mil. Inchcape's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $1,262 Mil. Inchcape's annualized EBITDA for the quarter that ended in Dec. 2023 was $1,010 Mil. Inchcape's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 2.17.

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

IHCPF' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.13 Med: 2.24 Max: 28.29
Current: 2.24

During the past 13 years, the highest Debt-to-EBITDA Ratio of Inchcape was 28.29. The lowest was 1.13. And the median was 2.24.

IHCPF's Debt-to-EBITDA is ranked better than
51.88% of 1037 companies
in the Vehicles & Parts industry
Industry Median: 2.36 vs IHCPF: 2.24

Inchcape Debt-to-EBITDA Historical Data

The historical data trend for Inchcape'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.

Inchcape Debt-to-EBITDA Chart

Inchcape Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

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1.13

28.29

1.92

3.87

2.24

Inchcape 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															1.51	1.09	3.95	2.16	2.17

Competitive Comparison of Inchcape's Debt-to-EBITDA

For the Auto & Truck Dealerships subindustry, Inchcape'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.

Inchcape's Debt-to-EBITDA Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Inchcape's Debt-to-EBITDA distribution charts can be found below:

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

Inchcape Debt-to-EBITDA Calculation

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

Inchcape'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
	=	(927.848	+	1262.025)	/	977.215
	=	2.24

Inchcape'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
	=	(927.848	+	1262.025)	/	1009.62
	=	2.17

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.

Inchcape (OTCPK:IHCPF) 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.

Inchcape Debt-to-EBITDA Related Terms

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

Inchcape (Inchcape) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Inchcape PLC (OTCPK:IHCPF) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

INCHl:UK INCH:UK IJCA:Germany

Address

22a St James's Square, London, GBR, SW1Y 5LP

Website

https://www.inchcape.com

Inchcape PLC, headquartered in the United Kingdom, is a distributor and retailer of premium and luxury automobiles through partnerships with original equipment manufacturers (OEMs). The company has four reportable segments and two operating business units: distribution and retail. The distribution segment delivers new vehicles and parts in three geographies (Europe, Asia Pacific (APAC), the Americas, and Africa) and provides associated marketing and logistics operations. The retail segment sells new and used vehicles in the U.K. and Europe. The company's profitable revenue sources are distribution services performed in APAC and retail services in the U.K. and Europe.