Lavoro (Lavoro) Debt-to-EBITDA : 2.99 (As of Dec. 2023)

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What is Lavoro Debt-to-EBITDA?

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

Lavoro's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $348 Mil. Lavoro's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $112 Mil. Lavoro's annualized EBITDA for the quarter that ended in Dec. 2023 was $154 Mil. Lavoro's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 2.99.

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

LVRO' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.8 Med: 1.02 Max: 9.57
Current: 9.57

During the past 4 years, the highest Debt-to-EBITDA Ratio of Lavoro was 9.57. The lowest was 0.80. And the median was 1.02.

LVRO's Debt-to-EBITDA is ranked worse than
89.71% of 175 companies
in the Agriculture industry
Industry Median: 2 vs LVRO: 9.57

Lavoro Debt-to-EBITDA Historical Data

The historical data trend for Lavoro'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.

Lavoro Debt-to-EBITDA Chart

Lavoro Annual Data

Trend

Jun20

Jun21

Jun22

Jun23

Debt-to-EBITDA

0.80

1.02

1.93

Lavoro Semi-Annual Data
	Jun20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial			-	1.36	1.30	-4.12	2.99

Competitive Comparison of Lavoro's Debt-to-EBITDA

For the Agricultural Inputs subindustry, Lavoro'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.

Lavoro's Debt-to-EBITDA Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Lavoro's Debt-to-EBITDA distribution charts can be found below:

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

Lavoro Debt-to-EBITDA Calculation

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

Lavoro's Debt-to-EBITDA for the fiscal year that ended in Jun. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(207.78	+	29.131)	/	122.488
	=	1.93

Lavoro'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
	=	(348.145	+	111.955)	/	153.662
	=	2.99

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.

Lavoro (NAS:LVRO) 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.

Lavoro Debt-to-EBITDA Related Terms

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

Lavoro (Lavoro) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Agriculture » Lavoro Ltd (NAS:LVRO) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

N/A

Address

Av. Dr. Cardoso de Melo, 1450, 4th floor, office 401, Sao Paulo, SP, BRA, 04548-005

Website

https://www.lavoroagro.com

Lavoro Ltd operates in the agricultural inputs retail market, with operations spread across Brazil and Colombia, and an emergent agricultural input trading company in Uruguay. The reportable segments of the company include the Brazil Cluster, which comprises companies dedicated to the distribution of agricultural inputs such as crop protection, seeds, fertilizers and specialty products, in Brazil; the LATAM Cluster, which includes companies dedicated to the distribution of agricultural inputs outside Brazil (predominantly in Colombia); and the Crop Care Cluster. A substantial part of the company's overall revenue is generated from its Brazil cluster segment.