Magellan Aerospace (TSX:MAL) Debt-to-EBITDA

: 1.17 (As of Dec. 2023)

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

Magellan Aerospace's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was C$25.0 Mil. Magellan Aerospace's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was C$48.5 Mil. Magellan Aerospace's annualized EBITDA for the quarter that ended in Dec. 2023 was C$63.0 Mil. Magellan Aerospace's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 1.17.

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 Magellan Aerospace's Debt-to-EBITDA or its related term are showing as below:

TSX:MAL' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.49 Med: 1.12 Max: 2.01
Current: 1.03

During the past 13 years, the highest Debt-to-EBITDA Ratio of Magellan Aerospace was 2.01. The lowest was 0.49. And the median was 1.12.

TSX:MAL's Debt-to-EBITDA is ranked better than
75.11% of 233 companies
in the Aerospace & Defense industry
Industry Median: 2.41 vs TSX:MAL: 1.03

Magellan Aerospace Debt-to-EBITDA Historical Data

The historical data trend for Magellan Aerospace'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.

Array ( [0] => - [1] => - [2] => - [3] => - [4] => - [5] => 0.83 [6] => 1.54 [7] => 1.20 [8] => 2.01 [9] => 1.03 )

Magellan Aerospace Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

0.83

1.54

1.20

2.01

1.03

Magellan Aerospace 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																-1.85	0.81	0.91	1.08	1.17

Competitive Comparison

For the Aerospace & Defense subindustry, Magellan Aerospace'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.

Magellan Aerospace Debt-to-EBITDA Distribution

For the Aerospace & Defense industry and Industrials sector, Magellan Aerospace's Debt-to-EBITDA distribution charts can be found below:

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

Magellan Aerospace Debt-to-EBITDA Calculation

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

Magellan Aerospace'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
	=	(24.973	+	48.48)	/	71.014
	=	1.03

Magellan Aerospace'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
	=	(24.973	+	48.48)	/	62.988
	=	1.17

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.

Magellan Aerospace (TSX:MAL) 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.

Magellan Aerospace Debt-to-EBITDA Related Terms

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

Magellan Aerospace (TSX:MAL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Magellan Aerospace Corp (TSX:MAL) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

MALJF:USA 4M7A:Germany

Address

3160 Derry Road East, Mississauga, ON, CAN, L4T 1A9

Website

https://www.magellan.aero

Magellan Aerospace Corp supplies components to the aerospace industry. It has two major product groups: aerostructures and aeroengines. Its engines and parts may be applied to new aircraft, or as replacement parts to existing platforms. The company also provides aftermarket support by conducting specific repairs and other maintenance services. It serves both commercial (approximately three-fourths of total sales) and defense markets. Additionally, parts and equipment may be provided for power generation projects, but sales do not constitute a material amount. The three geographic regions to which Magellan primarily sells are Canada, the United States, and Europe.

Magellan Aerospace (TSX:MAL) Headlines

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