Ventia Services Group (ASX:VNT) Debt-to-EBITDA : 1.84 (As of Dec. 2023)

View and export this data going back to 2021. Start your Free Trial

What is Ventia Services Group Debt-to-EBITDA?

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

Ventia Services Group's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$46 Mil. Ventia Services Group's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$833 Mil. Ventia Services Group's annualized EBITDA for the quarter that ended in Dec. 2023 was A$479 Mil. Ventia Services Group's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 1.83.

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 Ventia Services Group's Debt-to-EBITDA or its related term are showing as below:

ASX:VNT' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.89 Med: 2.15 Max: 2.9
Current: 1.89

During the past 3 years, the highest Debt-to-EBITDA Ratio of Ventia Services Group was 2.90. The lowest was 1.89. And the median was 2.15.

ASX:VNT's Debt-to-EBITDA is ranked better than
55.84% of 1309 companies
in the Construction industry
Industry Median: 2.32 vs ASX:VNT: 1.89

Ventia Services Group Debt-to-EBITDA Historical Data

The historical data trend for Ventia Services Group'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.

Ventia Services Group Debt-to-EBITDA Chart

Ventia Services Group Annual Data

Trend

Dec21

Dec22

Dec23

Debt-to-EBITDA

2.90

2.15

1.89

Ventia Services Group Semi-Annual Data
	Dec21	Jun22	Dec22	Jun23	Dec23
Debt-to-EBITDA	N/A	2.21	2.08	1.95	1.84

Competitive Comparison of Ventia Services Group's Debt-to-EBITDA

For the Infrastructure Operations subindustry, Ventia Services Group'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.

Ventia Services Group's Debt-to-EBITDA Distribution in the Construction Industry

For the Construction industry and Industrials sector, Ventia Services Group's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Ventia Services Group's Debt-to-EBITDA falls into.

Ventia Services Group Debt-to-EBITDA Calculation

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

Ventia Services Group's Debt-to-EBITDA for the fiscal year 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
	=	(46.2	+	833.1)	/	464.7
	=	1.89

Ventia Services Group'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
	=	(46.2	+	833.1)	/	479.2
	=	1.83

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.

Ventia Services Group (ASX:VNT) 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.

Ventia Services Group Debt-to-EBITDA Related Terms

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

Ventia Services Group (ASX:VNT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Ventia Services Group Ltd (ASX:VNT) » Definitions » Debt-to-EBITDA

Traded in Other Exchanges

VNT:New Zealand

Address

80 Pacific Highway, Level 8, North Sydney, Sydney, NSW, AUS, 2060

Website

https://www.ventia.com

While Ventia is not the largest player with an estimated 7.5% share of addressable markets, it is a leading infrastructure maintenance services provider in Australia and New Zealand. Its capabilities span the full asset lifecycle including operations and maintenance, facilities management, minor capital works, environmental services, and other solutions. And its business model is favorably capital-light via flexing of a large contractor base complementing a deep pool of talented employees. Ventia has long-term relationships with a diverse range of public and private sector clients with many client relationships maintained for decades. Contracts are favorably long with an average five-year duration at inception and most containing some form of embedded price escalation.