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Watkin Jones (LSE:WJG) Debt-to-EBITDA : -1.02 (As of Sep. 2023)


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What is Watkin Jones Debt-to-EBITDA?

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

Watkin Jones's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was £7.6 Mil. Watkin Jones's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was £66.2 Mil. Watkin Jones's annualized EBITDA for the quarter that ended in Sep. 2023 was £-72.5 Mil. Watkin Jones's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 was -1.02.

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

LSE:WJG' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -2.28   Med: 1.63   Max: 4.37
Current: -2.28

During the past 11 years, the highest Debt-to-EBITDA Ratio of Watkin Jones was 4.37. The lowest was -2.28. And the median was 1.63.

LSE:WJG's Debt-to-EBITDA is ranked worse than
100% of 83 companies
in the Homebuilding & Construction industry
Industry Median: 2.46 vs LSE:WJG: -2.28

Watkin Jones Debt-to-EBITDA Historical Data

The historical data trend for Watkin Jones'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.

Watkin Jones Debt-to-EBITDA Chart

Watkin Jones Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.83 4.37 2.18 2.47 -2.28

Watkin Jones Semi-Annual Data
Sep13 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 2.25 -7.78 0.96 10.81 -1.02

Competitive Comparison of Watkin Jones's Debt-to-EBITDA

For the Residential Construction subindustry, Watkin Jones'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.


Watkin Jones's Debt-to-EBITDA Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Watkin Jones's Debt-to-EBITDA distribution charts can be found below:

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



Watkin Jones Debt-to-EBITDA Calculation

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

Watkin Jones's Debt-to-EBITDA for the fiscal year that ended in Sep. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(7.567 + 66.158) / -32.275
=-2.28

Watkin Jones's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(7.567 + 66.158) / -72.454
=-1.02

* 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 two times the quarterly (Sep. 2023) EBITDA data.


Watkin Jones  (LSE:WJG) 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.


Watkin Jones Debt-to-EBITDA Related Terms

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


Watkin Jones (LSE:WJG) Business Description

Traded in Other Exchanges
Address
7-9 Swallow Street, London, GBR, W1B 4DE
Watkin Jones PLC is a developer and constructor of multi-occupancy property assets, with a focus on the student accommodation sector. Its service includes site identification and procurement, planning consent, construction delivery, and asset management. The company's operating segments include Student accommodation, Build to Rent, Affordable Homes, and Accommodation management. The majority of its revenue is derived from the Student accommodation and build-to-rent segments.

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