StoneCo (LSE:0A4H) Debt-to-EBITDA : 1.22 (As of Dec. 2023)

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What is StoneCo Debt-to-EBITDA?

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

StoneCo's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $384 Mil. StoneCo's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $743 Mil. StoneCo's annualized EBITDA for the quarter that ended in Dec. 2023 was $926 Mil. StoneCo's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 1.22.

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

LSE:0A4H' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -19.11 Med: 3.46 Max: 10.48
Current: 1.58

During the past 8 years, the highest Debt-to-EBITDA Ratio of StoneCo was 10.48. The lowest was -19.11. And the median was 3.46.

LSE:0A4H's Debt-to-EBITDA is ranked worse than
60.02% of 1601 companies
in the Software industry
Industry Median: 1.04 vs LSE:0A4H: 1.58

StoneCo Debt-to-EBITDA Historical Data

The historical data trend for StoneCo'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.

StoneCo Debt-to-EBITDA Chart

StoneCo Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

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4.20

3.53

-19.11

4.12

1.56

StoneCo 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															2.40	1.63	1.37	1.31	1.22

Competitive Comparison of StoneCo's Debt-to-EBITDA

For the Software - Infrastructure subindustry, StoneCo'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.

StoneCo's Debt-to-EBITDA Distribution in the Software Industry

For the Software industry and Technology sector, StoneCo's Debt-to-EBITDA distribution charts can be found below:

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

StoneCo Debt-to-EBITDA Calculation

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

StoneCo'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
	=	(383.689	+	742.727)	/	723.385
	=	1.56

StoneCo'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
	=	(383.689	+	742.727)	/	926.328
	=	1.22

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.

StoneCo (LSE:0A4H) 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.

StoneCo Debt-to-EBITDA Related Terms

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

StoneCo (LSE:0A4H) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » StoneCo Ltd (LSE:0A4H) » Definitions » Debt-to-EBITDA

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Traded in Other Exchanges

STNE:USA STNE:Mexico 0Q0:Germany STOC31:Brazil

Address

103 South Church Street, 4th Floor, Harbour Place, P.O. Box 10240, Grand Cayman, CYM, KY1-1002

Website

https://www.stone.co

StoneCo Ltd is a provider of financial technology solutions. The company offers solutions that empower merchants to conduct electronic commerce seamlessly across in-store, online, and mobile channels in Brazil. Its Stone Business Model combines advanced, end-to-end, cloud-based technology platforms; differentiated hyper-local and integrated distribution approaches; and white-glove, on-demand customer service.

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