Gaotu Techedu (Gaotu Techedu) Debt-to-EBITDA : -0.31 (As of Sep. 2023)

View and export this data going back to 2019. Start your Free Trial

What is Gaotu Techedu Debt-to-EBITDA?

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

Gaotu Techedu's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $5.1 Mil. Gaotu Techedu's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $12.0 Mil. Gaotu Techedu's annualized EBITDA for the quarter that ended in Sep. 2023 was $-54.6 Mil. Gaotu Techedu's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 was -0.31.

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

GOTU' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -1.75 Med: -0.3 Max: 1.12
Current: -1.31

During the past 7 years, the highest Debt-to-EBITDA Ratio of Gaotu Techedu was 1.12. The lowest was -1.75. And the median was -0.30.

GOTU's Debt-to-EBITDA is ranked worse than
100% of 183 companies
in the Education industry
Industry Median: 1.89 vs GOTU: -1.31

Gaotu Techedu Debt-to-EBITDA Historical Data

The historical data trend for Gaotu Techedu'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.

Gaotu Techedu Debt-to-EBITDA Chart

Gaotu Techedu Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

Get a 7-Day Free Trial

1.12

-0.47

-0.13

-1.75

-1.26

Gaotu Techedu 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	Get a 7-Day Free Trial															-1.56	0.31	0.49	-0.31	-0.25

Competitive Comparison of Gaotu Techedu's Debt-to-EBITDA

For the Education & Training Services subindustry, Gaotu Techedu'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.

Gaotu Techedu's Debt-to-EBITDA Distribution in the Education Industry

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

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

Gaotu Techedu Debt-to-EBITDA Calculation

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

Gaotu Techedu'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
	=	(5.497	+	6.34)	/	-6.784
	=	-1.74

Gaotu Techedu'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
	=	(5.056	+	11.996)	/	-54.56
	=	-0.31

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.

Gaotu Techedu (NYSE:GOTU) 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.

Gaotu Techedu Debt-to-EBITDA Related Terms

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

Gaotu Techedu (Gaotu Techedu) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Gaotu Techedu Inc (NYSE:GOTU) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

18WA:Germany

Address

10 Xibeiwang East Road, 5th Floor, Gientech Building, 17 East Zone, Haidian District, Beijing, CHN, 100193

Website

https://ir.gaotu.cn

Gaotu Techedu Inc is a technology-driven education company with core expertise in online K-12 courses. Its K-12 courses cover all primary and secondary grades. It also offers foreign language, professional, and interest courses. The company's segment includes the provision of education services. It operates solely in the PRC and all assets are located in the PRC.