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Aarvi Encon (NSE:AARVI) Debt-to-EBITDA : 0.69 (As of Dec. 2023)


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What is Aarvi Encon Debt-to-EBITDA?

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

Aarvi Encon's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was ₹86 Mil. Aarvi Encon's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was ₹0 Mil. Aarvi Encon's annualized EBITDA for the quarter that ended in Dec. 2023 was ₹125 Mil. Aarvi Encon's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 0.69.

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

NSE:AARVI' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.18   Med: 0.71   Max: 1.6
Current: 0.55

During the past 11 years, the highest Debt-to-EBITDA Ratio of Aarvi Encon was 1.60. The lowest was 0.18. And the median was 0.71.

NSE:AARVI's Debt-to-EBITDA is ranked better than
77.07% of 833 companies
in the Business Services industry
Industry Median: 1.88 vs NSE:AARVI: 0.55

Aarvi Encon Debt-to-EBITDA Historical Data

The historical data trend for Aarvi Encon'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.

Aarvi Encon Debt-to-EBITDA Chart

Aarvi Encon Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.67 0.98 0.30 0.46 0.18

Aarvi Encon Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 - 0.17 0.32 0.75 0.69

Competitive Comparison of Aarvi Encon's Debt-to-EBITDA

For the Staffing & Employment Services subindustry, Aarvi Encon'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.


Aarvi Encon's Debt-to-EBITDA Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Aarvi Encon's Debt-to-EBITDA distribution charts can be found below:

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



Aarvi Encon Debt-to-EBITDA Calculation

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

Aarvi Encon's Debt-to-EBITDA for the fiscal year that ended in Mar. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(34.03 + 0) / 186.639
=0.18

Aarvi Encon'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
=(86.228 + 0) / 125.068
=0.69

* 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 four times the quarterly (Dec. 2023) EBITDA data.


Aarvi Encon  (NSE:AARVI) 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.


Aarvi Encon Debt-to-EBITDA Related Terms

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


Aarvi Encon (NSE:AARVI) Business Description

Traded in Other Exchanges
N/A
Address
G.K. Road, Marathon Innova, B1 Wing, 603, Marathon NextGen Complex, Opposite Peninsula Corporate Park, Lower Parel (West), Mumbai, MH, IND, 400013
Aarvi Encon Ltd is a technical manpower outsourcing company providing Staffing solutions to companies in different sectors. Its services include Information Technology Staffing, Manpower Outsourcing, Manpower Deputation, Project Management, Construction Supervision, and Inspection Services, among others. The company caters its services to industries such as Oil and Gas, Engineering, Metals and Minerals, Fertilizer, Telecom, Pipeline, Infrastructure, and others. Geographically, it generates the majority of the revenue from India.

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