Tech Mahindra (BOM:532755) Debt-to-EBITDA : 0.43 (As of Mar. 2024)

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What is Tech Mahindra Debt-to-EBITDA?

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

Tech Mahindra's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₹17,633 Mil. Tech Mahindra's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₹7,734 Mil. Tech Mahindra's annualized EBITDA for the quarter that ended in Mar. 2024 was ₹59,160 Mil. Tech Mahindra's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 was 0.43.

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 Tech Mahindra's Debt-to-EBITDA or its related term are showing as below:

BOM:532755' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.16 Med: 0.3 Max: 0.55
Current: 0.47

During the past 13 years, the highest Debt-to-EBITDA Ratio of Tech Mahindra was 0.55. The lowest was 0.16. And the median was 0.30.

BOM:532755's Debt-to-EBITDA is ranked better than
65.24% of 1594 companies
in the Software industry
Industry Median: 1.055 vs BOM:532755: 0.47

Tech Mahindra Debt-to-EBITDA Historical Data

The historical data trend for Tech Mahindra'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.

Tech Mahindra Debt-to-EBITDA Chart

Tech Mahindra Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Debt-to-EBITDA

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0.55

0.38

0.29

0.31

0.47

Tech Mahindra Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Debt-to-EBITDA	Get a 7-Day Free Trial															0.33	-	0.56	-	0.43

Competitive Comparison of Tech Mahindra's Debt-to-EBITDA

For the Information Technology Services subindustry, Tech Mahindra'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.

Tech Mahindra's Debt-to-EBITDA Distribution in the Software Industry

For the Software industry and Technology sector, Tech Mahindra's Debt-to-EBITDA distribution charts can be found below:

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

Tech Mahindra Debt-to-EBITDA Calculation

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

Tech Mahindra'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
	=	(17633	+	7734)	/	54337
	=	0.47

Tech Mahindra'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
	=	(17633	+	7734)	/	59160
	=	0.43

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.

Tech Mahindra (BOM:532755) 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.

Tech Mahindra Debt-to-EBITDA Related Terms

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

Tech Mahindra (BOM:532755) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Tech Mahindra Ltd (BOM:532755) » Definitions » Debt-to-EBITDA

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TECHM:India

Address

Plot No. 1, Phase III, Rajiv Gandhi Infotech Park, Hinjewadi, Pune, MH, IND, 411 057

Website

https://www.techmahindra.com

Tech Mahindra Ltd is an IT services and consulting company in India. It offers a variety of technology solutions and services in addition to business process services. Its segments are Information Technology and Business Processing Outsourcing. The technology solutions include helping companies engage in cloud software, mobile solutions, network services, cybersecurity, and a variety of other options. The business process service is offered across various industries including telecom, financial services, retail, energy, hospitality, high-tech, agriculture, and food beverage. The company's approach includes cost reduction, process optimization, and ownership through automation and productivity improvements. Tech Mahindra generates approximately half of its revenue from the United States.

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