Waste Connections (NYSE:WCN) Debt-to-EBITDA

: 3.16 (As of Mar. 2023)

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

Waste Connections's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2023 was $45 Mil. Waste Connections's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2023 was $7,091 Mil. Waste Connections's annualized EBITDA for the quarter that ended in Mar. 2023 was $2,256 Mil. Waste Connections's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2023 was 3.16.

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

WCN' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 2.73 Med: 3.17 Max: 10.36
Current: 3.18

During the past 13 years, the highest Debt-to-EBITDA Ratio of Waste Connections was 10.36. The lowest was 2.73. And the median was 3.17.

WCN's Debt-to-EBITDA is ranked better than
50.3% of 167 companies
in the Waste Management industry
Industry Median: 3.20 vs WCN: 3.18

Waste Connections Debt-to-EBITDA Historical Data

The historical data trend for Waste Connections'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.

Waste Connections Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Debt-to-EBITDA

2.73

2.85

4.19

2.99

3.27

Waste Connections Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23
Debt-to-EBITDA																3.08	2.62	2.82	3.17	3.16

Competitive Comparison

For the Waste Management subindustry, Waste Connections'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.

Annual Data Quarterly Data

Waste Connections Debt-to-EBITDA Distribution

For the Waste Management industry and Industrials sector, Waste Connections's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Waste Connections's Debt-to-EBITDA falls in comparison to its industry or sector. The grey bar indicates the Debt-to-EBITDA's extreme value range as defined by GuruFocus.

Waste Connections Debt-to-EBITDA Calculation

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

Waste Connections's Debt-to-EBITDA for the fiscal year that ended in Dec. 2022 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(41.929	+	7055.611)	/	2170.254
	=	3.27

Waste Connections's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(44.591	+	7090.89)	/	2255.676
	=	3.16

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 (Mar. 2023) EBITDA data.

Waste Connections (NYSE:WCN) 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.

Waste Connections Debt-to-EBITDA Related Terms

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

Waste Connections (NYSE:WCN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Waste Management » Waste Connections Inc (NYSE:WCN) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

WCN:Mexico UI51:Germany WCN:Canada

Address

6220 Highway 7, Suite 600, Woodbridge, Vaughan, ON, CAN, L4H 4G3

Website

https://www.wasteconnections.com

Waste Connections is the third-largest integrated provider of traditional solid waste and recycling services in the North America, operating 97 active landfills (12 are exploration and production waste landfills and 14 are nonmunicipal waste landfills), 142 transfer stations, and 71 recycling operations. The firm serves residential, commercial, industrial, and energy end markets. Waste Connections entered the Canadian market with its 2016 merger with Progressive Waste. In 2021, 14% of consolidated revenue was generated from the firm's Canadian segment.

Executives

Andrea E. Bertone	director	C/O CORP. SECRETARY, PEABODY ENERGY CORP, 701 MARKET STREET, ST. LOUIS MO 63101
Robert Michael Cloninger	officer: SR VP, Deputy General Counsel	3 WATERWAY SQUARE PLACE, SUITE 110, THE WOODLANDS TX 77380
Susan Netherton	officer: VP People, Training & Devlpmnt	3 WATERWAY SQUARE PLACE, SUITE 110, THE WOODLANDS TX 77380
Jason Craft	officer: Sr Vice President-Operations	3 WATERWAY SQUARE PLACE, SUITE #110, THE WOODLANDS TX 77380
Elise Lipman Jordan	director	3 WATERWAY SQUARE PLACE, SUITE #110, THE WOODLANDS TX 77380
Eric Hansen	officer: Senior Vice President and CIO	3 WATERWAY SQUARE PLACE, SUITE #110, THE WOODLANDS TX 77380
Mary Anne Whitney	officer: Sr Vice President - Finance	3 WATERWAY SQUARE PLACE, SUITE #110, THE WOODLANDS TX 77380
Michael W Harlan	director	C/O WASTE CONNECTIONS, INC., 610 APPLEWOOD CRESCENT, SUITE 200, VAUGHAN A6 L4K 0C3
Patrick James Shea	officer: Sr. VP, General Counsel & Sec	3 WATERWAY SQUARE PLACE, SUITE 110, THE WOODLANDS TX 77380
Matthew Stephen Black	officer: Sr. Vice President - Tax	3 WATERWAY SQUARE PLACE, SUITE #110, THE WOODLANDS TX 77380
Edward E Guillet	director	C/O WASTE CONNECTIONS, INC, 610 APPLEWOOD CRESCENT, SUITE 200, VAUGHAN A6 L4K 0C3
Worthing Jackman	officer: EVP & CFO	3 WATERWAY SQUARE PLACE, SUITE 110, THE WOODLANDS TX 77380
Darrell W Chambliss	officer: EVP & COO	3 WATERWAY SQUARE PLACE, SUITE 110, THE WOODLANDS TX 77380
David M Hall	officer: Sr. Vice President	3 WATERWAY SQUARE PLACE, SUITE 110, THE WOODLANDS TX 77380
James Little	officer: Sr. Vice President Engineering	3 WATERWAY SQUARE PLACE, SUITE 110, THE WOODLANDS TX 77380