CAE (CAE) Debt-to-EBITDA

: 3.70 (As of Dec. 2023)

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

CAE's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $442 Mil. CAE's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $1,951 Mil. CAE's annualized EBITDA for the quarter that ended in Dec. 2023 was $646 Mil. CAE's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 3.70.

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

CAE' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.96 Med: 3.03 Max: 6.7
Current: 3.64

During the past 13 years, the highest Debt-to-EBITDA Ratio of CAE was 6.70. The lowest was 1.96. And the median was 3.03.

CAE's Debt-to-EBITDA is ranked worse than
66.52% of 230 companies
in the Aerospace & Defense industry
Industry Median: 2.42 vs CAE: 3.64

CAE Debt-to-EBITDA Historical Data

The historical data trend for CAE'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.

CAE Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Debt-to-EBITDA

3.41

4.03

6.70

5.28

4.11

CAE 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																3.54	3.25	3.73	4.39	3.70

Competitive Comparison

For the Aerospace & Defense subindustry, CAE'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.

CAE Debt-to-EBITDA Distribution

For the Aerospace & Defense industry and Industrials sector, CAE's Debt-to-EBITDA distribution charts can be found below:

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

CAE Debt-to-EBITDA Calculation

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

CAE's Debt-to-EBITDA for the fiscal year that ended in Mar. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(156.837	+	2218.446)	/	577.724
	=	4.11

CAE'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
	=	(441.86	+	1950.73)	/	646.392
	=	3.70

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.

CAE (NYSE:CAE) 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.

CAE Debt-to-EBITDA Related Terms

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CAE (CAE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » CAE Inc (NYSE:CAE) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

CE9:Germany CAE:Canada

Address

8585 Cote de Liesse, Saint-Laurent, QC, CAN, H4T 1G6

Website

https://www.cae.com

CAE Inc is a global company focused on delivering training for the civil aviation, defense, security, and healthcare markets. Multiple types of simulators and synthetic exercises may be sold to customers to serve as alternatives for live-training experiences. The company's training solutions are provided through products and services. CAE has many different training locations where clients can be trained and educated through a series of programs. Additionally, part of the revenues come from supplying aviation personnel on a lease, along with providing aviation support organizations. Roughly one-third of sales are from the United States, with the remainder split among several other nations.