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Aarti Pharmalabs (BOM:543748) Debt-to-EBITDA : 0.60 (As of Mar. 2024)


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What is Aarti Pharmalabs Debt-to-EBITDA?

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

Aarti Pharmalabs's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₹2,686 Mil. Aarti Pharmalabs's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₹167 Mil. Aarti Pharmalabs's annualized EBITDA for the quarter that ended in Mar. 2024 was ₹4,782 Mil. Aarti Pharmalabs's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 was 0.60.

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

BOM:543748' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -3.76   Med: 0.68   Max: 1.73
Current: 0.73

During the past 4 years, the highest Debt-to-EBITDA Ratio of Aarti Pharmalabs was 1.73. The lowest was -3.76. And the median was 0.68.

BOM:543748's Debt-to-EBITDA is ranked better than
66.41% of 655 companies
in the Drug Manufacturers industry
Industry Median: 1.69 vs BOM:543748: 0.73

Aarti Pharmalabs Debt-to-EBITDA Historical Data

The historical data trend for Aarti Pharmalabs'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.

Aarti Pharmalabs Debt-to-EBITDA Chart

Aarti Pharmalabs Annual Data
Trend Mar21 Mar22 Mar23 Mar24
Debt-to-EBITDA
-3.76 1.73 0.63 0.73

Aarti Pharmalabs Quarterly Data
Mar21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.67 - 0.61 - 0.60

Competitive Comparison of Aarti Pharmalabs's Debt-to-EBITDA

For the Drug Manufacturers - Specialty & Generic subindustry, Aarti Pharmalabs'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.


Aarti Pharmalabs's Debt-to-EBITDA Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Aarti Pharmalabs's Debt-to-EBITDA distribution charts can be found below:

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



Aarti Pharmalabs Debt-to-EBITDA Calculation

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

Aarti Pharmalabs's Debt-to-EBITDA for the fiscal year that ended in Mar. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(2685.5 + 167) / 3909.4
=0.73

Aarti Pharmalabs's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(2685.5 + 167) / 4782
=0.60

* 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.

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. 2024) EBITDA data.


Aarti Pharmalabs  (BOM:543748) 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.


Aarti Pharmalabs Debt-to-EBITDA Related Terms

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


Aarti Pharmalabs (BOM:543748) Business Description

Traded in Other Exchanges
Address
204, Udyog Kshetra, Mulund Goregaon Link Road, 2nd floor,, Mulund West, Mumbai, MH, IND, 400080
Aarti Pharmalabs Ltd manufactures pharmaceuticals and nutraceuticals with a footprint. It manufactures Active Pharmaceutical Ingredients (API), pharmaceutical intermediates, New Chemical Entities (NCE), and xanthine derivatives.

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