Power Financial (TSX:PWF.PR.H.PFD) Debt-to-EBITDA

: 2.69 (As of Sep. 2020)

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

Power Financial's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2020 was C$0.00 Mil. Power Financial's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2020 was C$11,380.00 Mil. Power Financial's annualized EBITDA for the quarter that ended in Sep. 2020 was C$4,228.00 Mil. Power Financial's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2020 was 2.69.

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

TSX:PWF.PR.H.PFD' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.48 Med: 1.79 Max: 2.82
Current: 2.82

During the past 13 years, the highest Debt-to-EBITDA Ratio of Power Financial was 2.82. The lowest was 1.48. And the median was 1.79.

TSX:PWF.PR.H.PFD's Debt-to-EBITDA is not ranked
in the Insurance industry.
Industry Median: 1.49 vs TSX:PWF.PR.H.PFD: 2.82

Power Financial Debt-to-EBITDA Historical Data

The historical data trend for Power Financial'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.

Power Financial Annual Data

Trend

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Debt-to-EBITDA

1.48

1.75

2.09

1.83

1.99

Power Financial Quarterly Data
	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20
Debt-to-EBITDA																1.81	2.48	3.08	1.65	2.69

Competitive Comparison

For the Insurance - Life subindustry, Power Financial'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.

Power Financial Debt-to-EBITDA Distribution

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

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

Power Financial Debt-to-EBITDA Calculation

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

Power Financial's Debt-to-EBITDA for the fiscal year that ended in Dec. 2019 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(808	+	8503)	/	4686
	=	1.99

Power Financial's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2020 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(0	+	11380)	/	4228
	=	2.69

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 (Sep. 2020) EBITDA data.

Power Financial (TSX:PWF.PR.H.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.

Power Financial Debt-to-EBITDA Related Terms

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

Power Financial (TSX:PWF.PR.H.PFD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Power Financial Corp (TSX:PWF.PR.H.PFD) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

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Address

751 Victoria Square, Montreal, QC, CAN, H2Y 2J3

Website

https://www.powerfinancial.com

Power Financial Corp, a subsidiary of Power Corporation of Canada, is a diversified management and holding company with interests in the financial services industry through its controlling interests in Great-West Life and IGM Financial. It also has holdings in Pargesa, a diversified industrial group based in Europe. Its segments include Lifeco and IGM Financial and the GBL. The firm's holdings are leading insurance, retirement, wealth management, and investment businesses, including a portfolio of alternative asset investment platforms.

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