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Fairfax Financial Holdings (TSX:FFH.PR.G.PFD) Debt-to-EBITDA

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

Fairfax Financial Holdings's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was C$1,060.67 Mil. Fairfax Financial Holdings's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was C$13,426.87 Mil. Fairfax Financial Holdings's annualized EBITDA for the quarter that ended in Dec. 2023 was C$11,033.32 Mil. Fairfax Financial Holdings's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 1.31.

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 Fairfax Financial Holdings's Debt-to-EBITDA or its related term are showing as below:

TSX:FFH.PR.G.PFD' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -39.8   Med: 2.02   Max: 6.97
Current: 1.47

During the past 13 years, the highest Debt-to-EBITDA Ratio of Fairfax Financial Holdings was 6.97. The lowest was -39.80. And the median was 2.02.

TSX:FFH.PR.G.PFD's Debt-to-EBITDA is ranked better than
50.52% of 291 companies
in the Insurance industry
Industry Median: 1.49 vs TSX:FFH.PR.G.PFD: 1.47

Fairfax Financial Holdings Debt-to-EBITDA Historical Data

The historical data trend for Fairfax Financial 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.

Fairfax Financial Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Debt-to-EBITDA
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.60 6.97 1.44 1.61 1.48

Fairfax Financial Holdings 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 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 0.73 1.05 1.74 1.13 1.31

Competitive Comparison

For the Insurance - Property & Casualty subindustry, Fairfax Financial 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.


Fairfax Financial Holdings Debt-to-EBITDA Distribution

For the Insurance industry and Financial Services sector, Fairfax Financial Holdings's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Fairfax Financial Holdings's Debt-to-EBITDA falls into.



Fairfax Financial Holdings Debt-to-EBITDA Calculation

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

Fairfax Financial Holdings's Debt-to-EBITDA for the fiscal year 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
=(1060.669 + 13426.867) / 9812.865
=1.48

Fairfax Financial Holdings'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
=(1060.669 + 13426.867) / 11033.32
=1.31

* 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 four times the quarterly (Dec. 2023) EBITDA data.


Fairfax Financial Holdings  (TSX:FFH.PR.G.PFD) 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.


Fairfax Financial Holdings Debt-to-EBITDA Related Terms

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


Fairfax Financial Holdings (TSX:FFH.PR.G.PFD) Business Description

Address
95 Wellington Street West, Suite 800, Toronto, ON, CAN, M5J 2N7
Fairfax provides reinsurance and property and casualty insurance in Canada, the United States, and other international markets. The company also has some noninsurance operations such as restaurants. Fairfax has been led by Prem Watsa, its chairman and CEO, since its formation in 1985.

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