Wickes Group (LSE:WIX) Debt-to-EBITDA : 3.93 (As of Dec. 2023)

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What is Wickes Group Debt-to-EBITDA?

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

Wickes Group's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was £80 Mil. Wickes Group's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was £596 Mil. Wickes Group's annualized EBITDA for the quarter that ended in Dec. 2023 was £172 Mil. Wickes Group's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 3.92.

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

LSE:WIX' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 3.73 Med: 4.41 Max: 5.43
Current: 3.95

During the past 6 years, the highest Debt-to-EBITDA Ratio of Wickes Group was 5.43. The lowest was 3.73. And the median was 4.41.

LSE:WIX's Debt-to-EBITDA is ranked worse than
66.59% of 841 companies
in the Retail - Cyclical industry
Industry Median: 2.67 vs LSE:WIX: 3.95

Wickes Group Debt-to-EBITDA Historical Data

The historical data trend for Wickes 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.

* Premium members only.

Wickes Group Debt-to-EBITDA Chart

Wickes Group Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

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5.27

4.81

3.73

4.00

3.95

Wickes Group Semi-Annual Data
	Dec18	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial					3.78	3.65	4.71	3.94	3.93

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

For the Home Improvement Retail subindustry, Wickes 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.

Wickes Group's Debt-to-EBITDA Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Wickes Group's Debt-to-EBITDA distribution charts can be found below:

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

Wickes Group Debt-to-EBITDA Calculation

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

Wickes Group'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
	=	(79.8	+	596)	/	171.3
	=	3.95

Wickes 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
	=	(79.8	+	596)	/	172.2
	=	3.92

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 two times the quarterly (Dec. 2023) EBITDA data.

Wickes Group (LSE:WIX) 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.

Wickes Group Debt-to-EBITDA Related Terms

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

Wickes Group (LSE:WIX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Wickes Group PLC (LSE:WIX) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

WIXl:UK

Address

19 Colonial Way, Vision House, Watford, GBR, WD24 4JL

Website

https://www.wickesplc.co.uk

Wickes Group PLC is a digitally-led, service-enabled home improvement retailer, delivering choice, convenience, value service to customers across the United Kingdom. Its three key customers include the Local Trade, DIY and Do It For Me (DIFM). The company operates from its network of 232 right-sized stores, which support nationwide fulfilment from convenient locations throughout the United Kingdom, and through its digital channels including its website, TradePro mobile app for trade members and its DIY app. These digital channels allow customers to research and order an extended range of its products and services and arrange virtual and in-person design consultations. The company has a single operating segment.