American Financial Group (American Financial Group) Debt-to-EBITDA

: 0.99 (As of Dec. 2023)

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

American Financial Group's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $0 Mil. American Financial Group's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $1,475 Mil. American Financial Group's annualized EBITDA for the quarter that ended in Dec. 2023 was $1,488 Mil. American Financial Group's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 0.99.

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 American Financial Group's Debt-to-EBITDA or its related term are showing as below:

AFG' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.14 Med: 1.29 Max: 2.7
Current: 1.2

During the past 13 years, the highest Debt-to-EBITDA Ratio of American Financial Group was 2.70. The lowest was 1.14. And the median was 1.29.

AFG's Debt-to-EBITDA is ranked better than
57.39% of 291 companies
in the Insurance industry
Industry Median: 1.49 vs AFG: 1.20

American Financial Group Debt-to-EBITDA Historical Data

The historical data trend for American Financial Group'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.

American Financial Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

1.53

2.70

1.22

1.14

1.20

American Financial Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-EBITDA																0.96	1.22	1.26	1.42	0.99

Competitive Comparison

For the Insurance - Property & Casualty subindustry, American Financial Group'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.

American Financial Group Debt-to-EBITDA Distribution

For the Insurance industry and Financial Services sector, American Financial Group's Debt-to-EBITDA distribution charts can be found below:

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

American Financial Group Debt-to-EBITDA Calculation

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

American Financial Group'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
	=	(0	+	1475)	/	1227
	=	1.20

American Financial Group'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
	=	(0	+	1475)	/	1488
	=	0.99

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.

American Financial Group (NYSE:AFG) 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.

American Financial Group Debt-to-EBITDA Related Terms

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

American Financial Group (American Financial Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » American Financial Group Inc (NYSE:AFG) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

QFI:Germany

Address

301 East Fourth Street, Cincinnati, OH, USA, 45202

Website

https://www.afginc.com

American Financial Group Inc is a holding company that is engaged primarily in property and casualty insurance services. The company has a focus on specialized commercial products for businesses. American also has annuity operations that are focused on sales of traditional fixed and fixed-indexed annuities in the education, bank, and individual markets. American's insurance operations are conducted through the Great American Insurance Group. The group writes business in all 50 of the United States, primarily through independent agents and brokers.

Executives

Amy Y Murray	director	3429 ARNOLD STREET, CINCINNATI OH 45202
William W Verity	director	301 EAST FOURTH STREET, CINCINNATI OH 45202
Terry S Jacobs	director	301 EAST FOURTH STREET, CINCINNATI OH 45202
Von Lehman John I	director	301 EAST FOURTH STREET, 38TH FLOOR, CINCINNATI OH 45202
John B Berding	director	301 E. FOURTH ST., 27TH FLOOR, CINCINNATI OH 45202
Mark A Weiss	officer: Senior VP & General Counsel	301 EAST FOURTH STREET, CINCINNATI OH 45202
Michelle A Gillis	officer: Sr. Vice President	301 E. FOURTH STREET, 39TH FLOOR, CINCINNATI OH 45202
Brian S. Hertzman	other: principal financial officer	301 EAST FOURTH STREET, CINCINNATI OH 45202
Thompson David Lawrence Jr	officer: President of Subsidiary	301 EAST FOURTH STREET, CINCINNATI OH 45202
James E Evans	director, officer: Sr. V. Pres. & Gen. Counsel	301 E FOURTH STREET, CINCINNATI OH 45202
Lindner Carl H Iii	director, officer: Co-President	14TH FLOOR PROVIDENT TOWER, ONE EAST FOURTH STREET, CINCINNATI OH 45202
S Craig Lindner	director, officer: Co-President	ONE EAST FOURTH STREET, CINCINNATI OH 45202
Vito C Peraino	officer: Sr. VP & General Counsel	301 EAST FOURTH STREET, CINCINNATI OH 45202
Evans N Nwankwo	director	301 EAST FOURTH STREET, 38TH FLOOR, CINCINNATI OH 45202
Kenneth C Ambrecht	director	250 EAST FIFTH STREET, CINCINNATI OH 45202