REE Automotive (REE Automotive) Debt-to-EBITDA : -0.27 (As of Dec. 2023)

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What is REE Automotive Debt-to-EBITDA?

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

REE Automotive's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $17.43 Mil. REE Automotive's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $21.25 Mil. REE Automotive's annualized EBITDA for the quarter that ended in Dec. 2023 was $-142.51 Mil. REE Automotive's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was -0.27.

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

REE' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -0.65 Med: -0.26 Max: -0.17
Current: -0.65

During the past 5 years, the highest Debt-to-EBITDA Ratio of REE Automotive was -0.17. The lowest was -0.65. And the median was -0.26.

REE's Debt-to-EBITDA is ranked worse than
100% of 1037 companies
in the Vehicles & Parts industry
Industry Median: 2.36 vs REE: -0.65

REE Automotive Debt-to-EBITDA Historical Data

The historical data trend for REE Automotive'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.

REE Automotive Debt-to-EBITDA Chart

REE Automotive Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

-0.17

-0.34

REE Automotive Quarterly Data
	Dec19	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Jun23	Sep23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial										-0.16	-0.21	N/A	-0.20	-0.27

Competitive Comparison of REE Automotive's Debt-to-EBITDA

For the Recreational Vehicles subindustry, REE Automotive'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.

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

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

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

REE Automotive Debt-to-EBITDA Calculation

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

REE Automotive'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
	=	(17.43	+	21.246)	/	-114.091
	=	-0.34

REE Automotive'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
	=	(17.43	+	21.246)	/	-142.508
	=	-0.27

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.

REE Automotive (NAS:REE) 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.

REE Automotive Debt-to-EBITDA Related Terms

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

REE Automotive (REE Automotive) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » REE Automotive Ltd (NAS:REE) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

N/A

Address

Kibbutz Glil-Yam, Herzliya, ISR, 4690500

Website

https://www.ree.auto

REE Automotive Ltd is a technology company whose mission is to be the cornerstone for zero-emission electric and autonomous vehicles. Company aims to empower the companies, such as original equipment manufacturers, or OEMs, delivery and logistics fleets, dealers, e-commerce retailers, new mobility players, Mobility-as-a-Service providers and autonomous drive companies, in the build-out of any size or shape of electric or autonomous vehicle - from Class 1 through Class 6, focusing primarily on Class 3 through 5 platform models on the P7 EV platform. Geographical preference in Israel, Germany, Norway, U.S, and Rest of the world.

Executives

David Weisburd	other: Member of Sponsor	1 WORLD TRADE CENTER, FLOOR 85, NEW YORK NY 10007
Hans Thomas	director	1 WORLD TRADE CENTER, FLOOR 85, NEW YORK NY 10007