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Tata Communications, (FRA:VIDB) Debt-to-EBITDA : 2.65 (As of Mar. 2024)


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What is Tata Communications, Debt-to-EBITDA?

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

Tata Communications,'s Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was €631 Mil. Tata Communications,'s Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was €617 Mil. Tata Communications,'s annualized EBITDA for the quarter that ended in Mar. 2024 was €470 Mil. Tata Communications,'s annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 was 2.65.

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

FRA:VIDB' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.8   Med: 3.34   Max: 5.18
Current: 2.63

During the past 13 years, the highest Debt-to-EBITDA Ratio of Tata Communications, was 5.18. The lowest was 1.80. And the median was 3.34.

FRA:VIDB's Debt-to-EBITDA is ranked worse than
57.91% of 316 companies
in the Telecommunication Services industry
Industry Median: 2.1 vs FRA:VIDB: 2.63

Tata Communications, Debt-to-EBITDA Historical Data

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

Tata Communications, Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.75 2.60 2.00 1.80 2.63

Tata Communications, 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.96 - 2.12 - 2.65

Competitive Comparison of Tata Communications,'s Debt-to-EBITDA

For the Telecom Services subindustry, Tata Communications,'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 Communications,'s Debt-to-EBITDA Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Tata Communications,'s Debt-to-EBITDA distribution charts can be found below:

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



Tata Communications, Debt-to-EBITDA Calculation

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

Tata Communications,'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
=(631.097 + 617.029) / 473.945
=2.63

Tata Communications,'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
=(631.097 + 617.029) / 470.384
=2.65

* 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.

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 Communications,  (FRA:VIDB) 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 Communications, Debt-to-EBITDA Related Terms

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


Tata Communications, (FRA:VIDB) Business Description

Traded in Other Exchanges
Address
Plot No. C21 & C36, ‘G’ Block, Bandra Kurla Complex, Mumbai, MH, IND, 400 098
Tata Communications Ltd is the primary provider of international and national voice and data transmission long-distance services, internet dial-up and broadband services and other value-added services. Since the deregulation of the Indian market, the company has diversified its businesses through acquisitions and entering new markets. Following the acquisition of Tyco's and Teleglobe's networks, Tata has become a major global voice and data carrier.

Tata Communications, (FRA:VIDB) Headlines

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