TELUS International (Cda) (TSX:TIXT) Debt-to-EBITDA : 2.53 (As of Dec. 2023)

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What is TELUS International (Cda) Debt-to-EBITDA?

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

TELUS International (Cda)'s Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was C$164 Mil. TELUS International (Cda)'s Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was C$2,184 Mil. TELUS International (Cda)'s annualized EBITDA for the quarter that ended in Dec. 2023 was C$928 Mil. TELUS International (Cda)'s annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 2.53.

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 TELUS International (Cda)'s Debt-to-EBITDA or its related term are showing as below:

TSX:TIXT' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.76 Med: 2.48 Max: 4.71
Current: 3.32

During the past 7 years, the highest Debt-to-EBITDA Ratio of TELUS International (Cda) was 4.71. The lowest was 1.76. And the median was 2.48.

TSX:TIXT's Debt-to-EBITDA is ranked worse than
76.13% of 1600 companies
in the Software industry
Industry Median: 1.04 vs TSX:TIXT: 3.32

TELUS International (Cda) Debt-to-EBITDA Historical Data

The historical data trend for TELUS International (Cda)'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.

TELUS International (Cda) Debt-to-EBITDA Chart

TELUS International (Cda) Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

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2.35

4.71

2.61

1.76

3.34

TELUS International (Cda) Quarterly Data
	Dec17	Dec18	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial															2.17	3.89	4.83	-	2.53

Competitive Comparison of TELUS International (Cda)'s Debt-to-EBITDA

For the Software - Infrastructure subindustry, TELUS International (Cda)'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.

TELUS International (Cda)'s Debt-to-EBITDA Distribution in the Software Industry

For the Software industry and Technology sector, TELUS International (Cda)'s Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where TELUS International (Cda)'s Debt-to-EBITDA falls into.

TELUS International (Cda) Debt-to-EBITDA Calculation

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

TELUS International (Cda)'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
	=	(163.675	+	2184.125)	/	702.998
	=	3.34

TELUS International (Cda)'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
	=	(163.675	+	2184.125)	/	928.388
	=	2.53

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.

TELUS International (Cda) (TSX:TIXT) 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.

TELUS International (Cda) Debt-to-EBITDA Related Terms

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

TELUS International (Cda) (TSX:TIXT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » TELUS International (Cda) Inc (TSX:TIXT) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

TIXT:USA 5Z9:Germany

Address

510 West Georgia Street, Floor 7, Vancouver, BC, CAN, V6B 0M3

Website

https://www.telusinternational.com

TELUS International (Cda) Inc is a digital customer experience innovator that designs, builds, and delivers next-generation solutions. Its clients include companies across several verticals, including Tech and Games, eCommerce and FinTech, Banking, Financial Services and Insurance, Communications and Media, and Travel and Hospitality. The solutions offered by the company include Digital Experience, Customer Experience, Advisory Services, and Back Office and Automation among other services. Geographically, it derives a majority of its revenue from the European region.