Alcoa (AAPRB.PFD) Debt-to-EBITDA : 3.30 (As of Sep. 2016)

View and export this data going back to 2014. Start your Free Trial

What is Alcoa Debt-to-EBITDA?

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

Alcoa's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2016 was $805.00 Mil. Alcoa's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2016 was $9,501.00 Mil. Alcoa's annualized EBITDA for the quarter that ended in Sep. 2016 was $3,128.00 Mil. Alcoa's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2016 was 3.29.

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

AAPRB.PFD' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0 Med: 0 Max: 5.85
Current: 5.85

During the past 13 years, the highest Debt-to-EBITDA Ratio of Alcoa was 5.85. The lowest was 0.00. And the median was 0.00.

AAPRB.PFD's Debt-to-EBITDA is not ranked
in the Metals & Mining industry.
Industry Median: 2.015 vs AAPRB.PFD: 5.85

Alcoa Debt-to-EBITDA Historical Data

The historical data trend for Alcoa'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.

Alcoa Debt-to-EBITDA Chart

Alcoa Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Debt-to-EBITDA

Get a 7-Day Free Trial

3.05

3.88

141.00

3.78

4.49

Alcoa Quarterly Data
	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16
Debt-to-EBITDA	Get a 7-Day Free Trial															3.59	-8.43	4.75	2.94	3.30

Competitive Comparison of Alcoa's Debt-to-EBITDA

For the Aluminum subindustry, Alcoa'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.

Alcoa's Debt-to-EBITDA Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Alcoa's Debt-to-EBITDA distribution charts can be found below:

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

Alcoa Debt-to-EBITDA Calculation

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

Alcoa's Debt-to-EBITDA for the fiscal year that ended in Dec. 2015 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(59	+	9044)	/	2026
	=	4.49

Alcoa's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2016 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(805	+	9501)	/	3128
	=	3.29

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. 2016) EBITDA data.

Alcoa (NYSE:AAPRB.PFD) 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.

Alcoa Debt-to-EBITDA Related Terms

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

Alcoa (AAPRB.PFD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Alcoa Inc (NYSE:AAPRB.PFD) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

https://www.arconic.com

Arconic Inc, formerly known as Alcoa Inc was first incorporated as the Pittsburgh Reduction Company on October 1, 1888. The Company is engaged in manufacturing and engineering lightweight metals. Its products include aluminum, titanium, and nickel, used in aerospace, automotive, commercial transportation, packaging, building and construction, oil and gas, defense, consumer electronics, and industrial applications. The Company is also engaged in the production and management of aluminum, fabricated aluminum, and alumina combined, through its active participation in all aspects of the industry: technology, mining, refining, smelting, fabricating, and recycling. It has investments and operating activities in, among others, Australia, Brazil, China, Guinea, Iceland, Russia, and Saudi Arabia. The Company operates in segments including Global Rolled Products, Engineered Products and Solutions, and Transportation and Construction Solutions. The Company's Global Rolled Products segment represents its midstream operations. The Engineered Products and Solutions segment represents a portion of the Company's downstream operations. Its downstream portfolio includes two segments Engineered Products and Solutions and Transportation and Construction Solutions. The Engineered Products and Solutions consist of Alcoa Titanium & Engineered Products; Alcoa Fastening Systems & Rings; Alcoa Forgings and Extrusions; and Alcoa Power and Propulsion. The Company's Transportation and Construction Solutions segment represents a portion of its downstream operations. The raw materials used includes bauxite, alloying materials, caustic soda, alumina, electricity, aluminum fluoride, fuel oil, calcined petroleum coke, lime (CaO), cathode blocks, natural gas, electricity, liquid pitch, natural gas, titanium alloys, titanium sponge and resin. The Company's trademark products include Howmet metal castings, Huck fasteners, Kawneer building panels and Dura-Bright wheels with easy-clean surface treatments.