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Olam Group (SGX:VC2) Debt-to-EBITDA : 7.44 (As of Jun. 2023)


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What is Olam Group Debt-to-EBITDA?

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

Olam Group's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2023 was S$4,164 Mil. Olam Group's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2023 was S$11,940 Mil. Olam Group's annualized EBITDA for the quarter that ended in Jun. 2023 was S$2,165 Mil. Olam Group's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2023 was 7.44.

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 Olam Group's Debt-to-EBITDA or its related term are showing as below:

SGX:VC2' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 6.3   Med: 8.33   Max: 11.09
Current: 7.31

During the past 13 years, the highest Debt-to-EBITDA Ratio of Olam Group was 11.09. The lowest was 6.30. And the median was 8.33.

SGX:VC2's Debt-to-EBITDA is ranked worse than
89.37% of 254 companies
in the Retail - Defensive industry
Industry Median: 2.645 vs SGX:VC2: 7.31

Olam Group Debt-to-EBITDA Historical Data

The historical data trend for Olam Group'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.

Olam Group Debt-to-EBITDA Chart

Olam Group Annual Data
Trend Jun13 Jun14 Jun15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.52 8.94 10.88 8.82 7.06

Olam Group Semi-Annual Data
Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23
Debt-to-EBITDA Get a 7-Day Free Trial 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 7.82 8.97 8.18 7.20 7.44

Competitive Comparison of Olam Group's Debt-to-EBITDA

For the Food Distribution subindustry, Olam Group'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.


Olam Group's Debt-to-EBITDA Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Olam Group's Debt-to-EBITDA distribution charts can be found below:

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



Olam Group Debt-to-EBITDA Calculation

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

Olam Group's Debt-to-EBITDA for the fiscal year that ended in Dec. 2022 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(5192.736 + 10953.008) / 2285.83
=7.06

Olam Group's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(4163.995 + 11939.853) / 2165.386
=7.44

* 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 (Jun. 2023) EBITDA data.


Olam Group  (SGX:VC2) 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.


Olam Group Debt-to-EBITDA Related Terms

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


Olam Group (SGX:VC2) Business Description

Traded in Other Exchanges
Address
7 Straits View, Marina One East Tower, No. 20-01, Singapore, SGP, 018936
Olam Group Ltd sources, processes, packages, and sells agricultural commodities. The company's operating segments include Olam Food Ingredients; Olam Global Agri and Olam International Limited. It generates maximum revenue from the Olam Global Agri segment. Geographically, it derives a majority of its revenue from Asia, the Middle East and Australia. Some of its products include Cocoa, Coffee, Cotton, Nuts, and Spices.

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