Tianqi Lithium (HKSE:09696) Debt-to-EBITDA : 0.62 (As of Dec. 2023)

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What is Tianqi Lithium Debt-to-EBITDA?

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

Tianqi Lithium's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was HK$1,192 Mil. Tianqi Lithium's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was HK$11,667 Mil. Tianqi Lithium's annualized EBITDA for the quarter that ended in Dec. 2023 was HK$20,604 Mil. Tianqi Lithium's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 0.62.

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

HKSE:09696' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -16.29 Med: 0.31 Max: 26.26
Current: 0.93

During the past 5 years, the highest Debt-to-EBITDA Ratio of Tianqi Lithium was 26.26. The lowest was -16.29. And the median was 0.31.

HKSE:09696's Debt-to-EBITDA is ranked better than
65.23% of 535 companies
in the Metals & Mining industry
Industry Median: 1.98 vs HKSE:09696: 0.93

Tianqi Lithium Debt-to-EBITDA Historical Data

The historical data trend for Tianqi Lithium'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.

Tianqi Lithium Debt-to-EBITDA Chart

Tianqi Lithium Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

-16.29

26.26

2.90

0.21

0.31

Tianqi Lithium Quarterly Data
	Dec19	Dec20	Mar21	Jun21	Dec21	Mar22	Jun22	Sep22	Dec22	Jun23	Sep23	Dec23	Mar24
Debt-to-EBITDA	Get a 7-Day Free Trial								0.15	N/A	0.31	0.62	-

Competitive Comparison of Tianqi Lithium's Debt-to-EBITDA

For the Other Industrial Metals & Mining subindustry, Tianqi Lithium'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.

Tianqi Lithium's Debt-to-EBITDA Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Tianqi Lithium's Debt-to-EBITDA distribution charts can be found below:

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

Tianqi Lithium Debt-to-EBITDA Calculation

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

Tianqi Lithium'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
	=	(1192.359	+	11667.184)	/	41191.85
	=	0.31

Tianqi Lithium'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
	=	(1192.359	+	11667.184)	/	20604.168
	=	0.62

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.

Tianqi Lithium (HKSE:09696) 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.

Tianqi Lithium Debt-to-EBITDA Related Terms

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

Tianqi Lithium (HKSE:09696) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Tianqi Lithium Corp (HKSE:09696) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

2220:Germany

Address

No. 10 East Gaopeng Road, Building 1, Hi-Tech Zone, Sichuan, Chengdu, CHN

Website

http://www.tianqilithium.com

Tianqi Lithium is a leading new energy materials company headquartered in China. The company is the largest producer of mined lithium globally in terms of output and is ranked third in terms of revenue generated from lithium, according to Wood Mackenzie. It is also the world's fourth largest and Asia's second largest lithium compound producer, as measured by production output, according to the same source. Tianqi is the only lithium producer in China that has achieved 100% self-sufficiency and has fully vertically integrated lithium mines. It operates in critical stages of the lithium value chain, including: 1) mining of lithium ore and manufacturing of lithium concentrate; and 2) manufacturing of lithium compounds and derivatives.

Tianqi Lithium (HKSE:09696) Headlines

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