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Global Payments (Global Payments) Debt-to-EBITDA

: 4.41 (As of Dec. 2023)
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Debt-to-EBITDA measures a company's ability to pay off its debt.

Global Payments's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $1,684 Mil. Global Payments's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $15,692 Mil. Global Payments's annualized EBITDA for the quarter that ended in Dec. 2023 was $3,945 Mil. Global Payments's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 4.40.

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

GPN' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 3.39   Med: 4.69   Max: 7.92
Current: 4.82

During the past 13 years, the highest Debt-to-EBITDA Ratio of Global Payments was 7.92. The lowest was 3.39. And the median was 4.69.

GPN's Debt-to-EBITDA is ranked worse than
78.13% of 823 companies
in the Business Services industry
Industry Median: 1.88 vs GPN: 4.82

Global Payments Debt-to-EBITDA Historical Data

The historical data trend for Global Payments'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.

Global Payments Annual Data
Trend May14 May15 May16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Debt-to-EBITDA
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.69 3.82 3.94 6.12 4.82

Global Payments 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.37 9.58 4.02 4.12 4.41

Competitive Comparison

For the Specialty Business Services subindustry, Global Payments'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.


Global Payments Debt-to-EBITDA Distribution

For the Business Services industry and Industrials sector, Global Payments's Debt-to-EBITDA distribution charts can be found below:

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



Global Payments Debt-to-EBITDA Calculation

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

Global Payments'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
=(1683.525 + 15692.297) / 3606.789
=4.82

Global Payments'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
=(1683.525 + 15692.297) / 3944.952
=4.40

* 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.

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.


Global Payments  (NYSE:GPN) 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.


Global Payments Debt-to-EBITDA Related Terms

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


Global Payments (Global Payments) Business Description

Traded in Other Exchanges
Address
3550 Lenox Road, Atlanta, GA, USA, 30326
Global Payments is a leading provider of payment processing and software solutions and focuses on serving small and midsize merchants. The company operates in 30 countries and generates about one fourth of its revenue from outside North America, primarily in Europe and Asia. In 2019, Global Payments merged with Total System Services in an all-stock deal that gave Total System Services shareholders 48% of the combined company's shares. The merger added issuer processing operations.
Executives
M Troy Woods director ONE TSYS WAY, COLUMBUS GA 31901
Baldwin Robert H B Jr director C/O HEARTLAND PAYMENT SYSTEMS, INC., 90 NASSAU STREET, PRINCETON NJ 08542
David M Sheffield officer: Chief Accounting Officer 10 GLENLAKE PARKWAY, NORTH TOWER, ATLANTA GA 30328
David Lawrence Green officer: EVP and General Counsel 1431 FAIRVIEW ROAD NE, ATLANTA GA 30306
Kirsten Marie Kliphouse director 531 SOUTH SPRING STREET, BURLINGTON NC 27215
Joshua J Whipple officer: Senior Executive VP and CFO 3550 LENOX ROAD NE, ATLANTA GA 30326
Guido Francesco Sacchi officer: EVP and CIO 533 ORME CIRCLE NE, ATLANTA GA 30306
Andrea M Carter officer: Senior Executive VP and CHRO 600 N. HURSTBOURNE PARKWAY, SUITE 400, LOUISVILLE KY 40222
Jeffrey Steven Sloan director, officer: CEO 5048 NORTHSIDE DRIVE, ATLANTA GA 30327
John G Bruno director
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Slp Galaxy Co-invest, L.p. director 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Sla Ii Galaxy Aggregator, L.p. director C/O SILVER LAKE, 2776 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Silver Lake Group, L.l.c. director 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025