Sun Life Financial (TSX:SLF.PR.I.PFD) Debt-to-EBITDA

: 3.68 (As of Dec. 2023)

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

Sun Life Financial's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was C$2,330.00 Mil. Sun Life Financial's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was C$10,947.00 Mil. Sun Life Financial's annualized EBITDA for the quarter that ended in Dec. 2023 was C$3,608.00 Mil. Sun Life Financial's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 3.68.

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

TSX:SLF.PR.I.PFD' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.23 Med: 2.02 Max: 2.96
Current: 2.96

During the past 13 years, the highest Debt-to-EBITDA Ratio of Sun Life Financial was 2.96. The lowest was 1.23. And the median was 2.02.

TSX:SLF.PR.I.PFD's Debt-to-EBITDA is ranked worse than
72.6% of 292 companies
in the Insurance industry
Industry Median: 1.5 vs TSX:SLF.PR.I.PFD: 2.96

Sun Life Financial Debt-to-EBITDA Historical Data

The historical data trend for Sun Life 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.

Sun Life Financial Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

1.86

1.70

1.23

2.91

2.96

Sun Life Financial 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																2.66	1.40	2.43	1.76	3.68

Competitive Comparison

For the Insurance - Diversified subindustry, Sun Life 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.

Sun Life Financial Debt-to-EBITDA Distribution

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

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

Sun Life Financial Debt-to-EBITDA Calculation

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

Sun Life Financial'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
	=	(2330	+	10947)	/	4482
	=	2.96

Sun Life Financial'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
	=	(2330	+	10947)	/	3608
	=	3.68

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.

Sun Life Financial (TSX:SLF.PR.I.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.

Sun Life Financial Debt-to-EBITDA Related Terms

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

Sun Life Financial (TSX:SLF.PR.I.PFD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Sun Life Financial Inc (TSX:SLF.PR.I.PFD) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

SUNFF.PFD:USA SLF:USA SLF:Philippines LIE:Germany SLF.PR.K.PFD:Canada SLF.PR.J.PFD:Canada SLF.PR.H.PFD:Canada SLF.PR.G.PFD:Canada SLF.PR.E.PFD:Canada SLF.PR.D.PFD:Canada SLF.PR.C.PFD:Canada SLF:Canada

Address

1 York Street, 31st Floor, Toronto, ON, CAN, M5J 0B6

Website

https://www.sunlife.com

Sun Life provides life insurance, retirement, and asset management products to individuals and corporate customers in Canada, the United States, and Asia. The company's investment management business contributes approximately 38% of its adjusted earnings and has around CAD 1 trillion in assets under management as of the second quarter of 2023. The Canada business contributes about 32% of adjusted earnings and provides individual life and health insurance, group insurance, retirement services, and wealth management solutions. The U.S. business contributes approximately 14% of earnings and is mainly focused on providing group insurance products and managing the in-force life insurance policies. Finally, the Asia segment contributes around 16% of earnings.

Sun Life Financial (TSX:SLF.PR.I.PFD) Headlines

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