Daikin Industries (TSE:6367) Debt-to-EBITDA

: 1.73 (As of Dec. 2023)

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

Daikin Industries's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was 円601,895 Mil. Daikin Industries's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was 円274,712 Mil. Daikin Industries's annualized EBITDA for the quarter that ended in Dec. 2023 was 円505,572 Mil. Daikin Industries's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 1.73.

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 Daikin Industries's Debt-to-EBITDA or its related term are showing as below:

TSE:6367' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.4 Med: 1.79 Max: 2.86
Current: 1.47

During the past 13 years, the highest Debt-to-EBITDA Ratio of Daikin Industries was 2.86. The lowest was 1.40. And the median was 1.79.

TSE:6367's Debt-to-EBITDA is ranked better than
62.51% of 1307 companies
in the Construction industry
Industry Median: 2.34 vs TSE:6367: 1.47

Daikin Industries Debt-to-EBITDA Historical Data

The historical data trend for Daikin Industries'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.

Daikin Industries Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Debt-to-EBITDA

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1.52

1.40

1.97

1.70

1.54

Daikin Industries 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	Get a 7-Day Free Trial															1.51	1.81	1.32	1.25	1.73

Competitive Comparison

For the Building Products & Equipment subindustry, Daikin Industries'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.

Daikin Industries Debt-to-EBITDA Distribution

For the Construction industry and Industrials sector, Daikin Industries's Debt-to-EBITDA distribution charts can be found below:

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

Daikin Industries Debt-to-EBITDA Calculation

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

Daikin Industries'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
	=	(476883	+	410745)	/	575901
	=	1.54

Daikin Industries'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
	=	(601895	+	274712)	/	505572
	=	1.73

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.

Daikin Industries (TSE:6367) 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.

Daikin Industries Debt-to-EBITDA Related Terms

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

Daikin Industries (TSE:6367) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Daikin Industries Ltd (TSE:6367) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

DKILY:USA DKILF:USA DKIA:Germany DKI:Germany DKI:Germany DKI:Austria

Address

Umeda Center Building, 2-4-12, Nakazaki-Nishi, Kita-ku, Osaka, JPN, 530-8323

Website

http://www.daikin.com

Daikin Industries is one of the world's largest heating, ventilating and air conditioning, or HVAC, companies. North America, Japan, China, and Europe are Daikin's four biggest markets, accounting for 24.1%, 23.7%, 16.7%, and 14.5% of fiscal 2018 revenue, respectively. Air conditioning accounted for around 90% of revenue and operating profit, while chemicals and others made up the balance.

Daikin Industries (TSE:6367) Headlines

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