IDP Education (ASX:IEL) Debt-to-EBITDA : 1.15 (As of Dec. 2023)

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What is IDP Education Debt-to-EBITDA?

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

IDP Education's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$22 Mil. IDP Education's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$379 Mil. IDP Education's annualized EBITDA for the quarter that ended in Dec. 2023 was A$350 Mil. IDP Education's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 1.15.

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

ASX:IEL' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0 Med: 0.86 Max: 1.44
Current: 1.35

During the past 8 years, the highest Debt-to-EBITDA Ratio of IDP Education was 1.44. The lowest was 0.00. And the median was 0.86.

ASX:IEL's Debt-to-EBITDA is ranked better than
60.99% of 182 companies
in the Education industry
Industry Median: 1.675 vs ASX:IEL: 1.35

IDP Education Debt-to-EBITDA Historical Data

The historical data trend for IDP Education'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.

IDP Education Debt-to-EBITDA Chart

IDP Education Annual Data

Trend

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Debt-to-EBITDA

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0.52

1.00

1.44

1.32

1.23

IDP Education Semi-Annual Data
	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial												1.25	1.33	1.16	1.34	1.15

Competitive Comparison of IDP Education's Debt-to-EBITDA

For the Education & Training Services subindustry, IDP Education'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.

IDP Education's Debt-to-EBITDA Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, IDP Education's Debt-to-EBITDA distribution charts can be found below:

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

IDP Education Debt-to-EBITDA Calculation

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

IDP Education's Debt-to-EBITDA for the fiscal year that ended in Jun. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(24.53	+	305.034)	/	268.155
	=	1.23

IDP Education's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(22.338	+	379.336)	/	350.374
	=	1.15

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 (Dec. 2023) EBITDA data.

IDP Education (ASX:IEL) 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.

IDP Education Debt-to-EBITDA Related Terms

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

IDP Education (ASX:IEL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » IDP Education Ltd (ASX:IEL) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

IDPUF:USA 03F:Germany

Address

697 Collins Street, Level 10, Docklands, VIC, AUS, 3008

Website

https://www.idp.com

IDP Education is a global leader in English language testing and student placement services, constituting 64% and 27% of fiscal 2022 group revenue, respectively. Additionally, IDP operates English language schools, organizes education events and delivers consultancy services to education institutions, which constitutes the remainder of group revenue. Originally established in Australia as an aid body for Southeast Asia, today IDP operates one of the world's most widely accepted English language tests and one of the world's largest student placement services businesses, predominantly connecting prospective migrants from India and China to Australia, Canada, and the United Kingdom.

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