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East African Breweries (NAI:EABL) Debt-to-EBITDA : 1.96 (As of Jun. 2023)


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What is East African Breweries Debt-to-EBITDA?

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

East African Breweries's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2023 was KES10,386 Mil. East African Breweries's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2023 was KES51,018 Mil. East African Breweries's annualized EBITDA for the quarter that ended in Jun. 2023 was KES31,284 Mil. East African Breweries's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2023 was 1.96.

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 East African Breweries's Debt-to-EBITDA or its related term are showing as below:

NAI:EABL' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.3   Med: 1.61   Max: 2.38
Current: 1.96

During the past 13 years, the highest Debt-to-EBITDA Ratio of East African Breweries was 2.38. The lowest was 1.30. And the median was 1.61.

NAI:EABL's Debt-to-EBITDA is ranked worse than
53.13% of 160 companies
in the Beverages - Alcoholic industry
Industry Median: 1.72 vs NAI:EABL: 1.96

East African Breweries Debt-to-EBITDA Historical Data

The historical data trend for East African Breweries'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.

East African Breweries Debt-to-EBITDA Chart

East African Breweries Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.47 2.38 2.37 1.32 1.96

East African Breweries Semi-Annual Data
Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
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 1.47 2.38 2.37 1.32 1.96

Competitive Comparison of East African Breweries's Debt-to-EBITDA

For the Beverages - Brewers subindustry, East African Breweries'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.


East African Breweries's Debt-to-EBITDA Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, East African Breweries's Debt-to-EBITDA distribution charts can be found below:

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



East African Breweries Debt-to-EBITDA Calculation

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

East African Breweries'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
=(10386.303 + 51017.625) / 31284.434
=1.96

East African Breweries's annualized Debt-to-EBITDA for the quarter 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
=(10386.303 + 51017.625) / 31284.434
=1.96

* 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 one times the quarterly (Jun. 2023) EBITDA data.


East African Breweries  (NAI:EABL) 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.


East African Breweries Debt-to-EBITDA Related Terms

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


East African Breweries (NAI:EABL) Business Description

Traded in Other Exchanges
N/A
Address
Corporate Centre, Block A, 5th Floor, P.O. Box 30161, Garden City Business Park, Ruaraka, Nairobi, KEN, 00100
East African Breweries PLC is a branded alcohol beverage company. The firm and its subsidiaries are involved in the marketing, production, and distribution of a collection of brands that range from beer, spirits, and adult non-alcoholic drinks. The company has invested in breweries, distilleries, support industries, and a distribution network across the region. The firm derives its revenue primarily from brewing, marketing, and selling of drinks, malt and barley. Its geographical segments include Kenya, Uganda, and Tanzania, of which the majority of the revenue is generated from Kenya.

East African Breweries (NAI:EABL) Headlines

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