Fire & Flower Holdings (TSX:FAF) Debt-to-EBITDA

: -4.54 (As of Mar. 2023)

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

Fire & Flower Holdings's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2023 was C$19.5 Mil. Fire & Flower Holdings's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2023 was C$37.2 Mil. Fire & Flower Holdings's annualized EBITDA for the quarter that ended in Mar. 2023 was C$-12.5 Mil. Fire & Flower Holdings's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2023 was -4.54.

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 Fire & Flower Holdings's Debt-to-EBITDA or its related term are showing as below:

TSX:FAF's Debt-to-EBITDA is not ranked ^*
in the Healthcare Providers & Services industry.
Industry Median: 2.57
* Ranked among companies with meaningful Debt-to-EBITDA only.

Fire & Flower Holdings Debt-to-EBITDA Historical Data

The historical data trend for Fire & Flower Holdings'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.

Fire & Flower Holdings Annual Data

Trend

Jan20

Jan21

Jan22

Debt-to-EBITDA

-22.54

-1.92

-2.14

Fire & Flower Holdings Quarterly Data
	Feb18	May18	Aug18	Nov18	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Mar23
Debt-to-EBITDA	Get a 7-Day Free Trial															-1.67	-4.84	-0.97	-0.72	-4.54

Competitive Comparison

For the Pharmaceutical Retailers subindustry, Fire & Flower Holdings'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.

Fire & Flower Holdings Debt-to-EBITDA Distribution

For the Healthcare Providers & Services industry and Healthcare sector, Fire & Flower Holdings's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Fire & Flower Holdings's Debt-to-EBITDA falls into.

Fire & Flower Holdings Debt-to-EBITDA Calculation

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

Fire & Flower Holdings's Debt-to-EBITDA for the fiscal year that ended in Jan. 2022 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(25.232	+	48.795)	/	-34.656
	=	-2.14

Fire & Flower Holdings'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
	=	(19.515	+	37.216)	/	-12.5
	=	-4.54

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.

Fire & Flower Holdings (TSX:FAF) 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.

Fire & Flower Holdings Debt-to-EBITDA Related Terms

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Fire & Flower Holdings (TSX:FAF) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Fire & Flower Holdings Corp (TSX:FAF) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

N/A

Address

130 King Street West, Suite 2500, Toronto, ON, CAN, M5X 1C8

Website

https://www.fireandflower.com

Fire & Flower Holdings Corp is an independent adult-use cannabis retailer focused on the Canadian market and international expansion opportunities. The company guides consumers through the complex world of cannabis through education-focused, retailing while the Hifyrea digital platform connects consumers with cannabis products. The company has three reportable segments namely, Retail segment, Wholesale and Logistics segment, and Digital Platform. Majority of the revenue is earned from Retail segment.