Marsh & McLennan (Marsh & McLennan) Debt-to-EBITDA

: 1.73 (As of Mar. 2024)

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

Marsh & McLennan's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $1,479 Mil. Marsh & McLennan's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $13,900 Mil. Marsh & McLennan's annualized EBITDA for the quarter that ended in Mar. 2024 was $8,876 Mil. Marsh & McLennan's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 was 1.73.

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 Marsh & McLennan's Debt-to-EBITDA or its related term are showing as below:

MMC' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.3 Med: 2.18 Max: 3.94
Current: 2.34

During the past 13 years, the highest Debt-to-EBITDA Ratio of Marsh & McLennan was 3.94. The lowest was 1.30. And the median was 2.18.

MMC's Debt-to-EBITDA is ranked worse than
65.64% of 291 companies
in the Insurance industry
Industry Median: 1.49 vs MMC: 2.34

Marsh & McLennan Debt-to-EBITDA Historical Data

The historical data trend for Marsh & McLennan'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.

Marsh & McLennan Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

3.94

3.35

2.44

2.56

2.44

Marsh & McLennan Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Debt-to-EBITDA																1.90	2.14	3.11	2.79	1.73

Competitive Comparison

For the Insurance Brokers subindustry, Marsh & McLennan'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.

Marsh & McLennan Debt-to-EBITDA Distribution

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

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

Marsh & McLennan Debt-to-EBITDA Calculation

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

Marsh & McLennan'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
	=	(1931	+	13505)	/	6317
	=	2.44

Marsh & McLennan's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(1479	+	13900)	/	8876
	=	1.73

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 (Mar. 2024) EBITDA data.

Marsh & McLennan (NYSE:MMC) 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.

Marsh & McLennan Debt-to-EBITDA Related Terms

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

Marsh & McLennan (Marsh & McLennan) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Marsh & McLennan Companies Inc (NYSE:MMC) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

MMC:Mexico MSN:Germany MSN:Germany M1MC34:Brazil MMCO:Austria MMC:Argentina

Address

1166 Avenue of the Americas, New York, NY, USA, 10036-2774

Website

https://www.marshmclennan.com

Marsh McLennan is a professional services firm that provides advice and solutions in the areas of risk, strategy, and human capital. The company operates through two main segments: risk and insurance services and consulting. In risk and insurance services, the firm offers services via Marsh (an insurance broker) and Guy Carpenter (a risk and reinsurance specialist). The consulting division comprises Mercer (a provider of human resource services) and Oliver Wyman (a management and economic consultancy). About half of its revenue is generated outside the U.S.

Executives

Oscar Fanjul	director	C/O OMEGA CAPITAL, S.L., PASEO DE LA CASTELLANA, 28, MADRID U3 28046
John Jude Jones	officer: Chief Marketing Officer	1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Dean Michael Klisura	officer: President & CEO, Guy Carpenter	1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Steven A Mills	director	IBM CORPORATION, 294 ROUTE 100, SOMERS NY 10589
Mark C Mcgivney	officer: Chief Financial Officer
Judith Hartmann	director	1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Ray G Young	director	77 WEST WACKER DR., SUITE 4600, CHICAGO IL 60601
Stacy Mills	officer: Vice President and Controller	C/O MARSH & MCLENNAN COMPANIES, INC., 1166 AVENENUE OF THE AMERICAS, NEW YORK NY 11102
Paul Beswick	officer: SVP, Chief Information Officer	1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Martin South	officer: President & CEO, Marsh	1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Martine Ferland	officer: President and CEO, Mercer	C/O MARSH & MCLENNAN COMPANIES, INC., 1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Katherine Brennan	officer: SVP and General Counsel	1166 AVENUE OF THE AMERICAS, 1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Daniel S Glaser	officer: Chairman & CEO, Marsh	C/O MARSH & MCLENNAN COMPANIES, INC., 1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Hafize Gaye Erkan	director	727 FIFTH AVENUE, NEW YORK NY 10022
Marc D Oken	director	C/O FALFURRIAS CAPITAL PARTNERS, 100 N. TRYON STREET, SUITE 5120, CHARLOTTE NC 28202