Sodexo (WBO:SW) Debt-to-EBITDA

: 7.78 (As of Aug. 2023)

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

Sodexo's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Aug. 2023 was €681 Mil. Sodexo's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Aug. 2023 was €5,702 Mil. Sodexo's annualized EBITDA for the quarter that ended in Aug. 2023 was €820 Mil. Sodexo's annualized Debt-to-EBITDA for the quarter that ended in Aug. 2023 was 7.78.

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

WBO:SW' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.84 Med: 3.12 Max: 7.71
Current: 4.67

During the past 13 years, the highest Debt-to-EBITDA Ratio of Sodexo was 7.71. The lowest was 1.84. And the median was 3.12.

WBO:SW's Debt-to-EBITDA is ranked worse than
76.61% of 825 companies
in the Business Services industry
Industry Median: 1.88 vs WBO:SW: 4.67

Sodexo Debt-to-EBITDA Historical Data

The historical data trend for Sodexo'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.

Sodexo Annual Data

Trend

Aug14

Aug15

Aug16

Aug17

Aug18

Aug19

Aug20

Aug21

Aug22

Aug23

Debt-to-EBITDA

2.83

7.71

7.40

5.15

4.67

Sodexo Semi-Annual Data
	Feb14	Aug14	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17	Feb18	Aug18	Feb19	Aug19	Feb20	Aug20	Feb21	Aug21	Feb22	Aug22	Feb23	Aug23
Debt-to-EBITDA																6.77	4.13	6.70	3.45	7.78

Competitive Comparison

For the Specialty Business Services subindustry, Sodexo'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.

Sodexo Debt-to-EBITDA Distribution

For the Business Services industry and Industrials sector, Sodexo's Debt-to-EBITDA distribution charts can be found below:

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

Sodexo Debt-to-EBITDA Calculation

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

Sodexo's Debt-to-EBITDA for the fiscal year that ended in Aug. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(681	+	5702)	/	1366
	=	4.67

Sodexo's annualized Debt-to-EBITDA for the quarter that ended in Aug. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(681	+	5702)	/	820
	=	7.78

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 two times the quarterly (Aug. 2023) EBITDA data.

Sodexo (WBO:SW) 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.

Sodexo Debt-to-EBITDA Related Terms

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

Sodexo (WBO:SW) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Sodexo (WBO:SW) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

SDXOF:USA SDXAY:USA SWp:UK 0J3F:UK SW:France SJ7:Germany

Address

255 Quai de la Bataille de Stalingrad, Issy-les-Moulineaux (Hauts-de-Seine), Cedex 9, Paris, FRA, 92130

Website

http://www.sodexo.com

Sodexo is one of the largest food service companies globally, operating in more than 80 countries with annual sales of over EUR 21 billion. Sodexo's model stems from operating on-premise catering facilities, rather than centralised industrial kitchens. While food services remains the largest business segment (58% of revenue in 2022), the company has actively pursued a strategy of diversifying its business activities into other areas, such as facilities-management services, which now represents 38% of group revenue.

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