THG (LSE:THG) Debt-to-EBITDA : 17.08 (As of Dec. 2023)

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What is THG Debt-to-EBITDA?

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

THG's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was £73 Mil. THG's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was £922 Mil. THG's annualized EBITDA for the quarter that ended in Dec. 2023 was £58 Mil. THG's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 17.08.

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

LSE:THG' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -3.5 Med: 11.28 Max: 26.16
Current: 23.46

During the past 7 years, the highest Debt-to-EBITDA Ratio of THG was 26.16. The lowest was -3.50. And the median was 11.28.

LSE:THG's Debt-to-EBITDA is ranked worse than
94.9% of 843 companies
in the Retail - Cyclical industry
Industry Median: 2.69 vs LSE:THG: 23.46

THG Debt-to-EBITDA Historical Data

The historical data trend for THG'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.

THG Debt-to-EBITDA Chart

THG Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

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13.52

-2.03

26.16

-3.50

23.46

THG Semi-Annual Data
	Dec17	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial							-20.32	44.88	-1.69	37.38	17.08

Competitive Comparison of THG's Debt-to-EBITDA

For the Internet Retail subindustry, THG'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.

THG's Debt-to-EBITDA Distribution in the Retail - Cyclical Industry

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

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

THG Debt-to-EBITDA Calculation

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

THG'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
	=	(72.563	+	922.451)	/	42.421
	=	23.46

THG'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
	=	(72.563	+	922.451)	/	58.27
	=	17.08

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.

THG (LSE:THG) 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.

THG Debt-to-EBITDA Related Terms

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

THG (LSE:THG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » THG PLC (LSE:THG) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

THGPF:USA THGl:UK

Address

Icon 1, Sunbank Lane, Ringway, Altrincham, GBR, WA15 0AF

Website

https://www.thg.com

THG PLC is an online retailer. It provides an end-to-end direct-to-consumer ("D2C") e-commerce solution for consumer brand owners under a Software as a Service, in addition to stand-alone services, including hosting, content creation and translation. Its business is operated through four businesses: THG Ingenuity, THG Nutrition, THG Beauty and Other. The company operates in the United Kingdom.