The Travelers (The Travelers) Debt-to-EBITDA

: 1.21 (As of Mar. 2024)

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

The Travelers's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $100 Mil. The Travelers's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $7,932 Mil. The Travelers's annualized EBITDA for the quarter that ended in Mar. 2024 was $6,656 Mil. The Travelers's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 was 1.21.

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

TRV' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1 Med: 1.52 Max: 1.8
Current: 1.8

During the past 13 years, the highest Debt-to-EBITDA Ratio of The Travelers was 1.80. The lowest was 1.00. And the median was 1.52.

TRV's Debt-to-EBITDA is ranked worse than
56.7% of 291 companies
in the Insurance industry
Industry Median: 1.49 vs TRV: 1.80

The Travelers Debt-to-EBITDA Historical Data

The historical data trend for The Travelers'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.

The Travelers Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

1.55

1.50

1.29

1.61

1.80

The Travelers 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																1.49	9.00	2.72	0.88	1.21

Competitive Comparison

For the Insurance - Property & Casualty subindustry, The Travelers'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.

The Travelers Debt-to-EBITDA Distribution

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

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

The Travelers Debt-to-EBITDA Calculation

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

The Travelers'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
	=	(100	+	7931)	/	4469
	=	1.80

The Travelers'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
	=	(100	+	7932)	/	6656
	=	1.21

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.

The Travelers (NYSE:TRV) 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.

The Travelers Debt-to-EBITDA Related Terms

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

The Travelers (The Travelers) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » The Travelers Companies Inc (NYSE:TRV) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

PA9:Germany PA9:Germany TRV:Chile TRVC34:Brazil TRV:Austria TRV:Argentina

Address

485 Lexington Avenue, New York, NY, USA, 10017

Website

https://www.travelers.com

Travelers offers a broad product range and participates in both commercial and personal insurance lines. Its commercial operations offer a variety of coverage types for companies of any size but concentrate on serving midsize businesses. Its personal lines are roughly evenly split between auto and homeowners insurance. Travelers derives 6% of its premiums from foreign markets.

Executives

Maria Olivo	officer: Executive Vice President	THE TRAVELERS COMPANIES, INC., 485 LEXINGTON AVENUE, NEW YORK NY 10017
William H Heyman	officer: Vice Chairman & CIO	THE TRAVELERS COMPANIES INC, 385 WASHINGTON STREET, ST PAUL MN 55102
Andy F Bessette	officer: EVP and Chief Admin Officer	THE TRAVELERS COMPANIES, INC., 385 WASHINGTON STREET, ST. PAUL MN 55102
Michael Frederick Klein	officer: EVP & President, Personal Ins.	385 WASHINGTON STREET, ST. PAUL MN 55102
Paul E. Munson	officer: SVP & Corp. Controller	385 WASHINGTON STREET, ST. PAUL MN 55102
Russell G. Golden	director	385 WASHINGTON STREET, ST. PAUL MN 55102
David Donnay Rowland	officer: EVP & Co-Chief Invest. Officer	385 WASHINGTON STREET, ST. PAUL MN 55102
Avrohom J. Kess	officer: Vice Chmn & Chief Legal Off	385 WASHINGTON STREET, ST. PAUL MN 55102
Daniel S. Frey	officer: Chief Financial Officer	385 WASHINGTON STREET, ST. PAUL MN 55102
Jeffrey P. Klenk	officer: EVP & Pres., Bond & Spec. Ins.	385 WASHINGTON STREET, ST. PAUL MN 55102
Gregory C Toczydlowski	officer: EVP & President, Business Ins.	385 WASHINGTON STREET, ST. PAUL MN 55102
Diane Kurtzman	officer: EVP & Chief HR Officer	385 WASHINGTON STREET, ST. PAUL MN 55102
Alan D Schnitzer	officer: Vice Chairman	385 WASHINGTON STREET, ST. PAUL MN 55102
Daniel Tei-hwa Yin	officer: EVP & Co-Chief Invest. Officer	385 WASHINGTON STREET, ST. PAUL MN 55102
Douglas K Russel	officer: Controller	THE TRAVELERS COMPANIES INC, ONE TOWER SQ, HARTFORD CT 06183