Molson Coors Beverage Co (NYSE:TAP) Debt-to-EBITDA

: 5.04 (As of Mar. 2023)

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

Molson Coors Beverage Co's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2023 was $413 Mil. Molson Coors Beverage Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2023 was $6,178 Mil. Molson Coors Beverage Co's annualized EBITDA for the quarter that ended in Mar. 2023 was $1,309 Mil. Molson Coors Beverage Co's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2023 was 5.04.

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 Molson Coors Beverage Co's Debt-to-EBITDA or its related term are showing as below:

TAP' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 3.04 Med: 3.73 Max: 14.97
Current: 8.51

During the past 13 years, the highest Debt-to-EBITDA Ratio of Molson Coors Beverage Co was 14.97. The lowest was 3.04. And the median was 3.73.

TAP's Debt-to-EBITDA is ranked worse than
89.61% of 154 companies
in the Beverages - Alcoholic industry
Industry Median: 1.87 vs TAP: 8.51

Molson Coors Beverage Co Debt-to-EBITDA Historical Data

The historical data trend for Molson Coors Beverage Co'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.

Molson Coors Beverage Co Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Debt-to-EBITDA

4.16

5.61

14.97

3.15

7.57

Molson Coors Beverage Co Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23
Debt-to-EBITDA																4.29	5.99	3.34	-4.99	5.04

Competitive Comparison

For the Beverages - Brewers subindustry, Molson Coors Beverage Co'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.

Annual Data Quarterly Data

Molson Coors Beverage Co Debt-to-EBITDA Distribution

For the Beverages - Alcoholic industry and Consumer Defensive sector, Molson Coors Beverage Co's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Molson Coors Beverage Co's Debt-to-EBITDA falls in comparison to its industry or sector. The grey bar indicates the Debt-to-EBITDA's extreme value range as defined by GuruFocus.

Molson Coors Beverage Co Debt-to-EBITDA Calculation

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

Molson Coors Beverage Co'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
	=	(441.8	+	6165.2)	/	872.9
	=	7.57

Molson Coors Beverage Co's annualized Debt-to-EBITDA for the quarter 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
	=	(412.7	+	6177.7)	/	1308.8
	=	5.04

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. 2023) EBITDA data.

Molson Coors Beverage Co (NYSE:TAP) 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.

Molson Coors Beverage Co Debt-to-EBITDA Related Terms

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

Molson Coors Beverage Co (NYSE:TAP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Molson Coors Beverage Co (NYSE:TAP) » Definitions » Debt-to-EBITDA

Traded in Other Exchanges

TAP.A:USA NY7:Germany

Address

NH353, P.O. Box 4030, Golden, CO, USA, 80401

Website

https://www.molsoncoors.com

Molson Coors is the fifth-largest beer producer globally, boasting top-two positioning in the U.S., Canada, and United Kingdom. It brews and markets a slew of company-owned brands including Blue Moon, Coors, Miller, Vizzy, and Staropramen. It also sells various partner brands in certain locales, including Topo Chico (licensed from Coca-Cola), Amstel and Dos Equis in Canada (through an exclusive import/license arrangement with Heineken), and Corona in Central Europe (through an agreement with Anheuser-Busch InBev). The firm's go-to-market approach differs by geography as well, primarily using independent distributors in the U.S. but deploying hybrid models in Canada and Europe.

Executives

Williams Leroy James Jr	director	10 LONGS PEAK DRIVE, BROOMFIELD CO 80021-2510
Anne-marie W D'angelo	officer: Chief Legal & Govt Affairs Off	801 E. 86TH AVENUE, MERRILLVILLE IN 46410
Julia M Brown	director	C/O ABLE BRANDS CO., 30 HUDSON YARDS, NEW YORK NY 10001
Roxanne Stelter	officer: VP,Controller & Chf Acct Off	3939 W HIGHLAND BLVD, MILWAUKEE WI 53208
Winnefeld James A Jr	director	870 WINTER STREET, WALTHAM MA 02451
David S. Coors	director	P.O. BOX 4030, NH353, GOLDEN CO 80401
Nessa O'sullivan	director	P.O. BOX 4030, NH353, GOLDEN CO 80401
Peter John Marino	officer: President of Emerging Growth	250 SOUTH WACKER DRIVE, CHICAGO IL 60606
Jacques Michelle St.	officer: Chief Marketing Officer	250 SOUTH WACKER DRIVE, CHICAGO IL 60606
E. Lee Reichert	officer: Chief Legal & Corp Affairs Off	1801 CALIFORNIA STREET, SUITE 4600, DENVER CO 80202
Sergey Yeskov	officer: Pres&CEO, Molson Coors Int'l	1801 CALIFORNIA STREET, SUITE 4600, DENVER CO 80202
Tracey Joubert	officer: Chief Financial Officer	1801 CALIFORNIA STREET, SUITE 4600, DENVER CO 80202
Frederic Landtmeters	officer: Pres&CEO, Molson Coors Canada	1801 CALIFORNIA STREET, SUITE 4600, DENVER CO 80202
Michelle Nettles	officer: Chief People&Diversity Off	MANPOWERGROUP INC., 100 MANPOWER PLACE, MILWAUKEE WI 53212
Betty K Devita	director	1801 CALIFORNIA STREET, SUITE 4600, DENVER CO 80202