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Reynolds American Debt-to-EBITDA

: 2.43 As of Mar. 2017
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Debt-to-EBITDA measures a company's ability to pay off its debt.

Reynolds American's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2017 was $501 Mil. Reynolds American's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2017 was $12,651 Mil. Reynolds American's annualized EBITDA for the quarter that ended in Mar. 2017 was $5,424 Mil. Reynolds American's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2017 was 2.42.

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.


Reynolds American Debt-to-EBITDA Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Reynolds American Annual Data
Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Debt-to-EBITDA Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.20 1.64 1.92 2.47 1.26

Reynolds American Quarterly Data
Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17
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 0.58 2.36 2.13 2.17 2.43

Competitive Comparison
* 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.


Reynolds American Debt-to-EBITDA Distribution

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



Reynolds American Debt-to-EBITDA Calculation

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

Reynolds American's Debt-to-EBITDA for the fiscal year that ended in Dec. 2016 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(501 + 12664) / 10440
=1.26

Reynolds American's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2017 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(501 + 12651) / 5424
=2.42

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 (Mar. 2017) EBITDA data.


Reynolds American  (NYSE:RAI) 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.


Reynolds American Debt-to-EBITDA Related Terms


Reynolds American Debt-to-EBITDA Headlines

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