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Fraser and Neave (SGX:F99) Long-Term Debt & Capital Lease Obligation : S$960 Mil (As of Sep. 2024)


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What is Fraser and Neave Long-Term Debt & Capital Lease Obligation?

Long-Term Debt & Capital Lease Obligation is the debt and capital lease obligation due more than 12 months in the future. Fraser and Neave's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was S$960 Mil.

Warning Sign:

Fraser and Neave Ltd keeps issuing new debt. Over the past 3 years, it issued SGD 231.769 million of debt.

LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. It is calculated as a company's Long-Term Debt & Capital Lease Obligation divides by its Total Assets. Fraser and Neave's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was S$960 Mil. Fraser and Neave's Total Assets for the quarter that ended in Sep. 2024 was S$5,202 Mil. Fraser and Neave's LT-Debt-to-Total-Asset for the quarter that ended in Sep. 2024 was 0.18.

Fraser and Neave's LT-Debt-to-Total-Asset increased from Sep. 2023 (0.16) to Sep. 2024 (0.18). It may suggest that Fraser and Neave is progressively becoming more dependent on debt to grow their business.


Fraser and Neave Long-Term Debt & Capital Lease Obligation Historical Data

The historical data trend for Fraser and Neave's Long-Term Debt & Capital Lease Obligation 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.

Fraser and Neave Long-Term Debt & Capital Lease Obligation Chart

Fraser and Neave Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Long-Term Debt & Capital Lease Obligation
Get a 7-Day Free Trial Premium Member Only Premium Member Only 821.06 535.80 873.06 825.92 959.62

Fraser and Neave Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
Long-Term Debt & Capital Lease Obligation 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 873.06 1,045.56 825.92 919.01 959.62

Fraser and Neave Long-Term Debt & Capital Lease Obligation Calculation

Long-Term Debt is the debt due more than 12 months in the future. The debt can be owed to banks or bondholders. Some companies issue bonds to investors and pay interest on the bonds.

Long-Term Capital Lease Obligation represents the total liability for long-term leases lasting over one year. It's amount equal to the present value (the principal) at the beginning of the lease term less lease payments during the lease term.

The interest paid on companies' debt is reflected in the income statement as interest expense. If a company has too much debt and it cannot serve the interest payment on the debt or repay the matured debt, the company risks bankruptcy. Peter Lynch famously said: A company that does not have debt cannot go bankrupt.

A company's long term debt may have different dates of maturity and interest rates, depending on the terms.

Usually a company issues long term debt to pay for its capital expenditures. Borrowing allows the company to do things that otherwise cannot be done with only the capital it has. But debt can be risky.


Fraser and Neave  (SGX:F99) Long-Term Debt & Capital Lease Obligation Explanation

LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. A year-over-year decrease in this metric would suggest the company is progressively becoming less dependent on debt to grow their business.

Fraser and Neave's LT-Debt-to-Total-Asset ratio for the quarter that ended in Sep. 2024 is calculated as:

LT-Debt-to-Total-Asset (Q: Sep. 2024 )=Long-Term Debt & Capital Lease Obligation (Q: Sep. 2024 )/Total Assets (Q: Sep. 2024 )
=959.624/5202.417
=0.18

* 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.

Buffett says that durable competitive advantages carry little to no long-term debt because the company is so profitable that even expansions or acquisitions are self financed.

We are interested in long term debt load for the last ten years. If the ten years of operation show little to no long term debt, then the company has some kind of strong competitive advantage.

Warren Buffett's historic purchases indicate that on any given year, the company should have sufficient yearly net earnings to pay all long term within 3 or 4 year earnings period. (e.g. Coke + Moody's = 1yr)

Companies with enough earning power to pay long term debt in less than 3 or 4 years is a good candidate in our search for long term competitive advantage.

BUT, these companies are targets for leveraged buy outs, which saddles the business with long term debt.

If all else indicates the company has a moat, but it has ton of debt, a leveraged buyout may have created the debt. In these cases the company's bonds offer the better bet, in that the company’s earnings power is focused on paying off the debt and not growth.

Important: little or no long term debt often means a Good Long Term Bet


Fraser and Neave Long-Term Debt & Capital Lease Obligation Related Terms

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Fraser and Neave Business Description

Traded in Other Exchanges
Address
438 Alexandra Road, Number 20-00 Alexandra Point, Singapore, SGP, 119958
Fraser and Neave Ltd is a Singapore-based company that operates through four segments: dairies, beverages, publishing and printing industries, and others. The dairies segment generates the majority of total revenue by manufacturing, marketing, and selling dairy products. The beverages segment is the next contributor to total revenue through the production and selling of soft drinks and alcoholic beverages. The publishing and printing business operates through a network of offices, printing plants, and distributors. The company mainly operates in Thailand, Malaysia, Singapore, Indochina, Indonesia, Myanmar and Philippines.

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