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Solution Financial (TSX:SFI) Debt-to-EBITDA : 2.41 (As of Apr. 2025)


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What is Solution Financial Debt-to-EBITDA?

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

Solution Financial's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Apr. 2025 was C$3.93 Mil. Solution Financial's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Apr. 2025 was C$0.00 Mil. Solution Financial's annualized EBITDA for the quarter that ended in Apr. 2025 was C$1.63 Mil. Solution Financial's annualized Debt-to-EBITDA for the quarter that ended in Apr. 2025 was 2.41.

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

TSX:SFI' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.14   Med: 1.96   Max: 26.57
Current: 2.15

During the past 13 years, the highest Debt-to-EBITDA Ratio of Solution Financial was 26.57. The lowest was 1.14. And the median was 1.96.

TSX:SFI's Debt-to-EBITDA is ranked better than
54.72% of 1080 companies
in the Vehicles & Parts industry
Industry Median: 2.59 vs TSX:SFI: 2.15

Solution Financial Debt-to-EBITDA Historical Data

The historical data trend for Solution 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.

Solution Financial Debt-to-EBITDA Chart

Solution Financial Annual Data
Trend Sep15 Sep16 Sep17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.91 1.96 1.96 1.14 1.49

Solution Financial Quarterly Data
Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25
Debt-to-EBITDA Get a 7-Day Free Trial 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 2.85 1.42 1.68 4.25 2.41

Competitive Comparison of Solution Financial's Debt-to-EBITDA

For the Auto & Truck Dealerships subindustry, Solution 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.


Solution Financial's Debt-to-EBITDA Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Solution Financial's Debt-to-EBITDA distribution charts can be found below:

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


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Solution Financial Debt-to-EBITDA Calculation

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

Solution Financial's Debt-to-EBITDA for the fiscal year that ended in Oct. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(3.072 + 0.012) / 2.077
=1.48

Solution Financial's annualized Debt-to-EBITDA for the quarter that ended in Apr. 2025 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(3.926 + 0) / 1.632
=2.41

* 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 (Apr. 2025) EBITDA data.


Solution Financial  (TSX:SFI) 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.


Solution Financial Debt-to-EBITDA Related Terms

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


Solution Financial Business Description

Traded in Other Exchanges
Address
8680 Cambie Road, Unit 137, Richmond, BC, CAN, V6X 4K1
Solution Financial Inc. specializes in sourcing and leasing solutions for luxury and exotic vehicles, yachts and other high value assets in Canada. The Company operates through retail sales, leases, and financing for automotive vehicles, boats, and commercial equipment and out of three locations being Richmond, British Columbia, Calgary, Alberta and Vaughan, Ontario. The company generates majority of its revenue from sale of vehicles.
Executives
Bryan Pang 10% Security Holder, Director, Senior Officer
John Randall Smyth Director
Sean Hodgins Director, Senior Officer
Kerry Don Meier Director
Vincent Ka Ho Lau Director, Senior Officer

Solution Financial Headlines

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