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Premier Foods (Premier Foods) Debt-to-EBITDA

: 1.85 (As of Sep. 2023)
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Debt-to-EBITDA measures a company's ability to pay off its debt.

Premier Foods's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $7 Mil. Premier Foods's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $415 Mil. Premier Foods's annualized EBITDA for the quarter that ended in Sep. 2023 was $228 Mil. Premier Foods's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 was 1.85.

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 Premier Foods's Debt-to-EBITDA or its related term are showing as below:

PFODF' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.65   Med: 4.57   Max: 9.88
Current: 1.73

During the past 13 years, the highest Debt-to-EBITDA Ratio of Premier Foods was 9.88. The lowest was 1.65. And the median was 4.57.

PFODF's Debt-to-EBITDA is ranked better than
55.88% of 1421 companies
in the Consumer Packaged Goods industry
Industry Median: 2.14 vs PFODF: 1.73

Premier Foods Debt-to-EBITDA Historical Data

The historical data trend for Premier Foods'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.

Premier Foods Annual Data
Trend Dec12 Dec13 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Debt-to-EBITDA
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.88 4.23 1.65 2.03 1.91

Premier Foods Semi-Annual Data
Jun13 Dec13 Jun14 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 2.71 1.67 2.46 1.62 1.85

Competitive Comparison

For the Packaged Foods subindustry, Premier Foods'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.


Premier Foods Debt-to-EBITDA Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Premier Foods's Debt-to-EBITDA distribution charts can be found below:

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



Premier Foods Debt-to-EBITDA Calculation

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

Premier Foods's Debt-to-EBITDA for the fiscal year that ended in Mar. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(3.762 + 407.282) / 215.655
=1.91

Premier Foods'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
=(6.807 + 414.975) / 228.218
=1.85

* 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.

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 two times the quarterly (Sep. 2023) EBITDA data.


Premier Foods  (OTCPK:PFODF) 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.


Premier Foods Debt-to-EBITDA Related Terms

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


Premier Foods (Premier Foods) Business Description

Traded in Other Exchanges
Address
Premier House, Griffiths Way, Centrium Business Park, Saint Albans, Hertfordshire, GBR, AL1 2RE
Premier Foods PLC is a food manufacturing company. It manufactures, processes, and distributes food products. The company's operating segments include Grocery and Sweet Treats. Grocery segment primarily sells savoury ambient food products. The Sweet Treats segment sells sweet ambient food products. It generates maximum revenue from the Grocery segment. Geographically, it derives a majority of its revenue from the United Kingdom and also has a presence in Other Europe and Rest of world. Some of the company brands include Ambrosia, Angel Delight, Atora, Batchelors, Be-Ro, Bird's, Bisto, Cadbury, Coffee Compliment, Homepride, and others.

Premier Foods (Premier Foods) Headlines

From GuruFocus

John Paulson Urges Premier Foods to Take Buyout Offer

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