Tata Motors (BUE:TTM) Debt-to-EBITDA : 1.40 (As of Mar. 2024)

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What is Tata Motors Debt-to-EBITDA?

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

Tata Motors's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ARS3,799,858 Mil. Tata Motors's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ARS7,085,126 Mil. Tata Motors's annualized EBITDA for the quarter that ended in Mar. 2024 was ARS7,796,438 Mil. Tata Motors's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 was 1.40.

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

BUE:TTM' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -37.09 Med: 2.57 Max: 7.57
Current: 1.65

During the past 13 years, the highest Debt-to-EBITDA Ratio of Tata Motors was 7.57. The lowest was -37.09. And the median was 2.57.

BUE:TTM's Debt-to-EBITDA is ranked better than
62.51% of 1051 companies
in the Vehicles & Parts industry
Industry Median: 2.39 vs BUE:TTM: 1.65

Tata Motors Debt-to-EBITDA Historical Data

The historical data trend for Tata Motors'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.

Tata Motors Debt-to-EBITDA Chart

Tata Motors Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Debt-to-EBITDA

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7.57

7.52

5.54

3.63

1.65

Tata Motors Quarterly Data
	Dec13	Mar14	Dec14	Mar15	Mar16	Mar17	Mar18	Mar19	Mar20	Mar21	Sep21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Debt-to-EBITDA	Get a 7-Day Free Trial															2.36	-	2.09	-	1.40

Competitive Comparison of Tata Motors's Debt-to-EBITDA

For the Auto Manufacturers subindustry, Tata Motors'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.

Tata Motors's Debt-to-EBITDA Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Tata Motors's Debt-to-EBITDA distribution charts can be found below:

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

Tata Motors Debt-to-EBITDA Calculation

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

Tata Motors'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
	=	(3799857.522	+	7085125.898)	/	6617603.112
	=	1.64

Tata Motors'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
	=	(3799857.522	+	7085125.898)	/	7796437.812
	=	1.40

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.

Tata Motors (BUE:TTM) 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.

Tata Motors Debt-to-EBITDA Related Terms

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

Tata Motors (BUE:TTM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Tata Motors Ltd (BUE:TTM) » Definitions » Debt-to-EBITDA

Traded in Other Exchanges

TATAMTRDVR:India TATAMOTORS:India 570001:India 500570:India

Address

24, Homi Mody Street, Bombay House, Mumbai, MH, IND, 400 001

Website

https://www.tatamotors.com

Tata Motors Ltd is an automobile manufacturer company. The company's segment includes Automotive and others. The Automotive segment consists of four reportable sub-segments: Tata Commercial Vehicles, Tata Passenger Vehicles, Jaguar Land Rover, and Vehicle Financing. Others consist of IT services and Insurance Broking services. Geographically, it derives a majority of its revenue from India.