Great-West Lifeco (TSX:GWO.PR.O.PFD) Debt-to-EBITDA

: 3.00 (As of Dec. 2023)

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

Great-West Lifeco's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was C$435.00 Mil. Great-West Lifeco's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was C$9,215.00 Mil. Great-West Lifeco's annualized EBITDA for the quarter that ended in Dec. 2023 was C$3,212.00 Mil. Great-West Lifeco's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 3.00.

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 Great-West Lifeco's Debt-to-EBITDA or its related term are showing as below:

TSX:GWO.PR.O.PFD' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.48 Med: 1.92 Max: 2.82
Current: 2.46

During the past 13 years, the highest Debt-to-EBITDA Ratio of Great-West Lifeco was 2.82. The lowest was 1.48. And the median was 1.92.

TSX:GWO.PR.O.PFD's Debt-to-EBITDA is ranked worse than
67.24% of 293 companies
in the Insurance industry
Industry Median: 1.49 vs TSX:GWO.PR.O.PFD: 2.46

Great-West Lifeco Debt-to-EBITDA Historical Data

The historical data trend for Great-West Lifeco'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.

Great-West Lifeco Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

1.94

2.82

1.99

2.28

2.42

Great-West Lifeco 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																5.14	3.05	2.51	1.69	3.00

Competitive Comparison

For the Insurance - Life subindustry, Great-West Lifeco'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.

Great-West Lifeco Debt-to-EBITDA Distribution

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

* The bar in red indicates where Great-West Lifeco's Debt-to-EBITDA falls into.

Great-West Lifeco Debt-to-EBITDA Calculation

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

Great-West Lifeco'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
	=	(435	+	9215)	/	3983
	=	2.42

Great-West Lifeco'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
	=	(435	+	9215)	/	3212
	=	3.00

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.

Great-West Lifeco (TSX:GWO.PR.O.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.

Great-West Lifeco Debt-to-EBITDA Related Terms

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

Great-West Lifeco (TSX:GWO.PR.O.PFD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Great-West Lifeco Inc (TSX:GWO.PR.O.PFD) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

GWLIF:USA GWO.PR.T.PFD:Canada GWO.PR.S.PFD:Canada GWO.PR.R.PFD:Canada GWO.PR.Q.PFD:Canada GWO.PR.P.PFD:Canada GWO.PR.N.PFD:Canada GWO.PR.M.PFD:Canada GWO.PR.L.PFD:Canada GWO.PR.I.PFD:Canada GWO.PR.H.PFD:Canada GWO.PR.G.PFD:Canada GWO:Canada

Address

100 Osborne Street North, Winnipeg, MB, CAN, R3C 1V3

Website

https://www.greatwestlifeco.com

Great-West Lifeco provides life insurance, health insurance, retirement products, asset management, recordkeeping services, and reinsurance products in Canada, the United States, and Europe. The Canada business contributes approximately 35% of adjusted earnings and has leading market positions in group insurance, group retirement, and individual insurance. The company operates the second-largest recordkeeping business under the Empower brand in the United States, with an earnings contribution from the country approximating 20%. Great-West Lifeco also offers various products across Europe markets with a strong presence in the U.K., Ireland, and Germany. The Europe segment contributes around 28% of adjusted earnings and the reinsurance business accounts for around 17% of adjusted earnings.

Great-West Lifeco (TSX:GWO.PR.O.PFD) Headlines

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