Vitru (VTRU) Debt-to-EBITDA : 3.22 (As of Sep. 2023)

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What is Vitru Debt-to-EBITDA?

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

Vitru's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $69.0 Mil. Vitru's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $371.9 Mil. Vitru's annualized EBITDA for the quarter that ended in Sep. 2023 was $136.8 Mil. Vitru's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 was 3.22.

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

VTRU' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.96 Med: 2.14 Max: 5.36
Current: 3.79

During the past 6 years, the highest Debt-to-EBITDA Ratio of Vitru was 5.36. The lowest was 0.96. And the median was 2.14.

VTRU's Debt-to-EBITDA is ranked worse than
69.4% of 183 companies
in the Education industry
Industry Median: 1.89 vs VTRU: 3.79

Vitru Debt-to-EBITDA Historical Data

The historical data trend for Vitru'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.

Vitru Debt-to-EBITDA Chart

Vitru Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Debt-to-EBITDA

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1.29

2.45

2.14

0.96

5.36

Vitru Quarterly Data
	Dec18	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Debt-to-EBITDA	Get a 7-Day Free Trial														3.87	6.85	3.15	2.86	3.22

Competitive Comparison of Vitru's Debt-to-EBITDA

For the Education & Training Services subindustry, Vitru'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.

Vitru's Debt-to-EBITDA Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Vitru's Debt-to-EBITDA distribution charts can be found below:

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

Vitru Debt-to-EBITDA Calculation

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

Vitru's Debt-to-EBITDA for the fiscal year that ended in Dec. 2022 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(34.786	+	335.745)	/	69.138
	=	5.36

Vitru'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
	=	(69.006	+	371.879)	/	136.844
	=	3.22

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 (Sep. 2023) EBITDA data.

Vitru (NAS:VTRU) 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.

Vitru Debt-to-EBITDA Related Terms

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

Vitru (VTRU) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Vitru Ltd (NAS:VTRU) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

N/A

Address

5500, Torre Jurere A, 2nd floor, Saco Grande, Rodovia Jose Carlos Daux, Florianopolis, SC, BRA, 88032-005

Website

https://www.vitru.com.br

Vitru Ltd is a digital education provider in Brazil. It provides post-secondary distance learning programs. The company provides a complete pedagogical ecosystem focused on hybrid digital education experience for undergraduates and continuing education. The programs are provided in multiple formats namely, videos, eBook, podcasts and html text, among others. The segments of the company are digital education undergraduate courses, on-campus undergraduate and continuing education courses.