Alfa Laval AB (Alfa Laval AB) Debt-to-EBITDA

: 1.41 (As of Dec. 2023)

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

Alfa Laval AB's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $478 Mil. Alfa Laval AB's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $1,102 Mil. Alfa Laval AB's annualized EBITDA for the quarter that ended in Dec. 2023 was $1,118 Mil. Alfa Laval AB's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 1.41.

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 Alfa Laval AB's Debt-to-EBITDA or its related term are showing as below:

ALFVY' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.29 Med: 1.76 Max: 3.04
Current: 1.39

During the past 13 years, the highest Debt-to-EBITDA Ratio of Alfa Laval AB was 3.04. The lowest was 1.29. And the median was 1.76.

ALFVY's Debt-to-EBITDA is ranked better than
55.78% of 2302 companies
in the Industrial Products industry
Industry Median: 1.705 vs ALFVY: 1.39

Alfa Laval AB Debt-to-EBITDA Historical Data

The historical data trend for Alfa Laval AB'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.

Alfa Laval AB Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

1.54

1.53

1.29

2.04

1.39

Alfa Laval AB 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																2.10	1.45	1.60	1.38	1.41

Competitive Comparison

For the Specialty Industrial Machinery subindustry, Alfa Laval AB'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.

Alfa Laval AB Debt-to-EBITDA Distribution

For the Industrial Products industry and Industrials sector, Alfa Laval AB's Debt-to-EBITDA distribution charts can be found below:

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

Alfa Laval AB Debt-to-EBITDA Calculation

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

Alfa Laval AB'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
	=	(478.28	+	1101.817)	/	1138.668
	=	1.39

Alfa Laval AB'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
	=	(478.28	+	1101.817)	/	1118
	=	1.41

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.

Alfa Laval AB (OTCPK:ALFVY) 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.

Alfa Laval AB Debt-to-EBITDA Related Terms

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Alfa Laval AB (Alfa Laval AB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Alfa Laval AB (OTCPK:ALFVY) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

ALFVF:USA ALFA:Sweden ALFAs:UK 0NNF:UK AA9:Germany

Address

Rudeboksvagen 1, P.O. Box 73, Lund, SWE, SE-221 00

Website

https://www.alfalaval.com

Alfa Laval is a leading manufacturer of highly engineered equipment, primarily in the areas of separation, heat transfer, and fluid handling used by a diverse range of customers spanning the food, water, energy, and marine industry verticals. These products play a key role in a number of industrial processes, and Alfa Laval enjoys a leading position in all three areas. Alfa Laval's history stretches back 140 years to when its first separator was developed. The company is listed on the Stockholm stock exchange.