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Imperial Brands (LSE:IMB) Debt-to-EBITDA : 1.86 (As of Sep. 2023)


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What is Imperial Brands Debt-to-EBITDA?

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

Imperial Brands's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was £1,580 Mil. Imperial Brands's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was £8,150 Mil. Imperial Brands's annualized EBITDA for the quarter that ended in Sep. 2023 was £5,246 Mil. Imperial Brands's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 was 1.85.

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

LSE:IMB' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.97   Med: 3.22   Max: 4.9
Current: 1.97

During the past 13 years, the highest Debt-to-EBITDA Ratio of Imperial Brands was 4.90. The lowest was 1.97. And the median was 3.22.

LSE:IMB's Debt-to-EBITDA is ranked worse than
60.61% of 33 companies
in the Tobacco Products industry
Industry Median: 1.6 vs LSE:IMB: 1.97

Imperial Brands Debt-to-EBITDA Historical Data

The historical data trend for Imperial Brands'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.

Imperial Brands Debt-to-EBITDA Chart

Imperial Brands Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.77 3.30 2.20 2.08 1.97

Imperial Brands 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 Get a 7-Day Free Trial 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 3.39 2.03 2.07 2.28 1.86

Competitive Comparison of Imperial Brands's Debt-to-EBITDA

For the Tobacco subindustry, Imperial Brands'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.


Imperial Brands's Debt-to-EBITDA Distribution in the Tobacco Products Industry

For the Tobacco Products industry and Consumer Defensive sector, Imperial Brands's Debt-to-EBITDA distribution charts can be found below:

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



Imperial Brands Debt-to-EBITDA Calculation

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

Imperial Brands's Debt-to-EBITDA for the fiscal year 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
=(1580 + 8150) / 4948
=1.97

Imperial Brands'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
=(1580 + 8150) / 5246
=1.85

* 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.


Imperial Brands  (LSE:IMB) 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.


Imperial Brands Debt-to-EBITDA Related Terms

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


Imperial Brands (LSE:IMB) Business Description

Address
121 Winterstoke Road, Bristol, GBR, BS3 2LL
Imperial Brands is the world's fourth-largest international tobacco company (excluding China National Tobacco) with total fiscal 2023 volume of 198 billion cigarettes sold in more than 160 countries. The firm holds a leading global position in the fine-cut tobacco and hand-rolling paper categories, and it has a logistics platform in Western Europe, Altadis. Through acquisition, Imperial is the third-largest manufacturer in the U.S. and owns the Winston and blu brands.

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