Lenovo Group (HKSE:00992) Debt-to-EBITDA : 1.00 (As of Dec. 2023)

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What is Lenovo Group Debt-to-EBITDA?

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

Lenovo Group's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was HK$1,375 Mil. Lenovo Group's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was HK$29,886 Mil. Lenovo Group's annualized EBITDA for the quarter that ended in Dec. 2023 was HK$31,334 Mil. Lenovo Group's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 1.00.

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

HKSE:00992' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.4 Med: 2.36 Max: 5.43
Current: 1.34

During the past 13 years, the highest Debt-to-EBITDA Ratio of Lenovo Group was 5.43. The lowest was 0.40. And the median was 2.36.

HKSE:00992's Debt-to-EBITDA is ranked better than
58.02% of 1727 companies
in the Hardware industry
Industry Median: 1.81 vs HKSE:00992: 1.34

Lenovo Group Debt-to-EBITDA Historical Data

The historical data trend for Lenovo 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.

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Lenovo Group Debt-to-EBITDA Chart

Lenovo Group Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Debt-to-EBITDA

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2.99

2.86

1.73

0.89

1.15

Lenovo Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial															1.08	3.33	1.43	1.21	1.00

Competitive Comparison of Lenovo Group's Debt-to-EBITDA

For the Computer Hardware subindustry, Lenovo 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.

Lenovo Group's Debt-to-EBITDA Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Lenovo Group's Debt-to-EBITDA distribution charts can be found below:

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

Lenovo Group Debt-to-EBITDA Calculation

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

Lenovo Group's Debt-to-EBITDA for the fiscal year that ended in Mar. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(3102.866	+	31112.365)	/	29862.561
	=	1.15

Lenovo 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
	=	(1375.485	+	29886.004)	/	31334.136
	=	1.00

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 (Dec. 2023) EBITDA data.

Lenovo Group (HKSE:00992) 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.

Lenovo Group Debt-to-EBITDA Related Terms

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

Lenovo Group (HKSE:00992) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Lenovo Group Ltd (HKSE:00992) » Definitions » Debt-to-EBITDA

Comparable Companies

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LNVGY:USA LNVGF:USA LHL:Germany

Address

979 King's Road, 23rd Floor, Lincoln House, Taikoo Place, Quarry Bay, Hong Kong, HKG

Website

https://www.lenovo.com

Lenovo is a global technology hardware company with a leading market share in personal computers. Its operations are divided into three main business segments: PC and smart devices, mobile, and data center, which we expect to account for 55%, 11%, and 19% of sales in the midterm, respectively. The firm has been actively growing its data center business, which primarily sells network servers to enterprise and hyperscale customers, as well as storage equipment through its mainland China joint venture with NetApp. Server-related revenue contribution has jumped to 16% of overall sales in fiscal 2022, from 6% in 2015.

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