Tata Technologies (BOM:544028) Debt-to-EBITDA : 0.24 (As of Mar. 2024)

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What is Tata Technologies Debt-to-EBITDA?

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

Tata Technologies's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₹524 Mil. Tata Technologies's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₹2,050 Mil. Tata Technologies's annualized EBITDA for the quarter that ended in Mar. 2024 was ₹10,564 Mil. Tata Technologies's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 was 0.24.

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

BOM:544028' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.24 Med: 0.38 Max: 0.63
Current: 0.48

During the past 5 years, the highest Debt-to-EBITDA Ratio of Tata Technologies was 0.63. The lowest was 0.24. And the median was 0.38.

BOM:544028's Debt-to-EBITDA is ranked better than
64.67% of 1616 companies
in the Software industry
Industry Median: 1.005 vs BOM:544028: 0.48

Tata Technologies Debt-to-EBITDA Historical Data

The historical data trend for Tata Technologies'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 Technologies Debt-to-EBITDA Chart

Tata Technologies Annual Data

Trend

Mar20

Mar21

Mar22

Mar23

Mar24

Debt-to-EBITDA

0.51

0.63

0.38

0.28

0.24

Tata Technologies Quarterly Data
	Mar20	Mar21	Dec21	Mar22	Sep22	Dec22	Mar23	Sep23	Dec23	Mar24
Debt-to-EBITDA	Get a 7-Day Free Trial					0.28	0.22	N/A	-	0.24

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

For the Information Technology Services subindustry, Tata Technologies'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 Technologies's Debt-to-EBITDA Distribution in the Software Industry

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

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

Tata Technologies Debt-to-EBITDA Calculation

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

Tata Technologies'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
	=	(523.8	+	2050.1)	/	10568.3
	=	0.24

Tata Technologies'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
	=	(523.8	+	2050.1)	/	10564.4
	=	0.24

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 Technologies (BOM:544028) 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 Technologies Debt-to-EBITDA Related Terms

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

Tata Technologies (BOM:544028) Business Description

Industry

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Traded in Other Exchanges

TATATECH:India

Address

Plot No. 25, Rajiv Gandhi Infotech Park, Hinjawadi, Pune, MH, IND, 411 057

Website

https://www.tatatechnologies.com/in

Tata Technologies Ltd is a engineering services company offering product development and digital solutions, including turnkey solutions, to original equipment manufacturers (OEMs) and their tier-1 suppliers. It endeavors to create value for its clients by helping them develop safer products, and cleaner and improve the quality of life for their end-customers. It has deep domain expertise in the automotive industry and leverages this expertise to serve its clients in adjacent industries, such as aerospace and transportation and construction heavy machinery. As an organization, it brings together diverse teams from different parts of the world with multiple skill sets to collaborate in real time and solve complex engineering problems for its clients.

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