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Burberry Group (LSE:BRBY) Debt-to-EBITDA

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

Burberry Group's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was £329 Mil. Burberry Group's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was £1,221 Mil. Burberry Group's annualized EBITDA for the quarter that ended in Sep. 2023 was £842 Mil. Burberry Group's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 was 1.84.

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

LSE:BRBY' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.04   Med: 0.18   Max: 2.8
Current: 1.54

During the past 13 years, the highest Debt-to-EBITDA Ratio of Burberry Group was 2.80. The lowest was 0.04. And the median was 0.18.

LSE:BRBY's Debt-to-EBITDA is ranked better than
69.41% of 837 companies
in the Retail - Cyclical industry
Industry Median: 2.67 vs LSE:BRBY: 1.54

Burberry Group Debt-to-EBITDA Historical Data

The historical data trend for Burberry Group'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.

Burberry Group Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Debt-to-EBITDA
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.07 2.80 1.71 1.64 1.46

Burberry Group Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
Debt-to-EBITDA Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.03 1.39 1.76 1.27 1.84

Competitive Comparison

For the Luxury Goods subindustry, Burberry Group'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.


Burberry Group Debt-to-EBITDA Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Burberry Group's Debt-to-EBITDA distribution charts can be found below:

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



Burberry Group Debt-to-EBITDA Calculation

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

Burberry Group's Debt-to-EBITDA for the fiscal year that ended in Mar. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(286 + 1200) / 1015
=1.46

Burberry Group's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(329 + 1221) / 842
=1.84

* 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 (Sep. 2023) EBITDA data.


Burberry Group  (LSE:BRBY) 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.


Burberry Group Debt-to-EBITDA Related Terms

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


Burberry Group (LSE:BRBY) Business Description

Traded in Other Exchanges
Address
Horseferry Road, Horseferry House, London, GBR, SW1P 2AW
Burberry, a British luxury monobrand, which is more than 160 years old, is best known for its outerwear and signature plaid. It has a global presence with 32% of revenue generated in Europe, 42% in Asia, and 25% in North America. Apparel contributes about 62% of sales.

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