Franchetti SpA (MIL:FCH) Debt-to-EBITDA : 0.70 (As of Dec. 2023)

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What is Franchetti SpA Debt-to-EBITDA?

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

Franchetti SpA's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was €2.80 Mil. Franchetti SpA's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was €0.22 Mil. Franchetti SpA's annualized EBITDA for the quarter that ended in Dec. 2023 was €4.33 Mil. Franchetti SpA's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 0.70.

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

MIL:FCH' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.12 Med: 1.35 Max: 4.39
Current: 1.19

During the past 4 years, the highest Debt-to-EBITDA Ratio of Franchetti SpA was 4.39. The lowest was 1.12. And the median was 1.35.

MIL:FCH's Debt-to-EBITDA is ranked better than
68.25% of 1307 companies
in the Construction industry
Industry Median: 2.31 vs MIL:FCH: 1.19

Franchetti SpA Debt-to-EBITDA Historical Data

The historical data trend for Franchetti SpA'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.

Franchetti SpA Debt-to-EBITDA Chart

Franchetti SpA Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

4.39

1.51

1.12

1.19

Franchetti SpA Semi-Annual Data
	Dec20	Dec21	Jun22	Dec22	Jun23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial			N/A	-	0.62	3.66	0.70

Competitive Comparison of Franchetti SpA's Debt-to-EBITDA

For the Engineering & Construction subindustry, Franchetti SpA'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.

Franchetti SpA's Debt-to-EBITDA Distribution in the Construction Industry

For the Construction industry and Industrials sector, Franchetti SpA's Debt-to-EBITDA distribution charts can be found below:

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

Franchetti SpA Debt-to-EBITDA Calculation

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

Franchetti SpA'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
	=	(2.797	+	0.224)	/	2.531
	=	1.19

Franchetti SpA'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
	=	(2.797	+	0.224)	/	4.328
	=	0.70

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.

Franchetti SpA (MIL:FCH) 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.

Franchetti SpA Debt-to-EBITDA Related Terms

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

Franchetti SpA (MIL:FCH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Franchetti SpA (MIL:FCH) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

D0E:Germany

Address

Vi Piazzale della Vittoria 7, Arzignano, ITA, I-36071

Website

https://www.franchetti.tech

Franchetti SpA is a civil and environmental engineering company specializes in the inspection, analysis and maintenance of high-value elements, such as bridges and complex transport networks.