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Firstsource Solutions (NSE:FSL) Debt-to-EBITDA : 1.51 (As of Mar. 2024)


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What is Firstsource Solutions Debt-to-EBITDA?

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

Firstsource Solutions's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₹9,576 Mil. Firstsource Solutions's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₹5,756 Mil. Firstsource Solutions's annualized EBITDA for the quarter that ended in Mar. 2024 was ₹10,126 Mil. Firstsource Solutions's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 was 1.51.

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

NSE:FSL' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.03   Med: 1.79   Max: 2.62
Current: 1.54

During the past 13 years, the highest Debt-to-EBITDA Ratio of Firstsource Solutions was 2.62. The lowest was 1.03. And the median was 1.79.

NSE:FSL's Debt-to-EBITDA is ranked worse than
58.79% of 1609 companies
in the Software industry
Industry Median: 1.06 vs NSE:FSL: 1.54

Firstsource Solutions Debt-to-EBITDA Historical Data

The historical data trend for Firstsource Solutions'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.

Firstsource Solutions Debt-to-EBITDA Chart

Firstsource Solutions Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.13 1.73 1.86 1.46 1.54

Firstsource Solutions Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 1.36 - 1.54 - 1.51

Competitive Comparison of Firstsource Solutions's Debt-to-EBITDA

For the Information Technology Services subindustry, Firstsource Solutions'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.


Firstsource Solutions's Debt-to-EBITDA Distribution in the Software Industry

For the Software industry and Technology sector, Firstsource Solutions's Debt-to-EBITDA distribution charts can be found below:

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



Firstsource Solutions Debt-to-EBITDA Calculation

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

Firstsource Solutions's Debt-to-EBITDA for the fiscal year that ended in Mar. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(9576.48 + 5755.8) / 9932.84
=1.54

Firstsource Solutions's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(9576.48 + 5755.8) / 10125.68
=1.51

* 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 (Mar. 2024) EBITDA data.


Firstsource Solutions  (NSE:FSL) 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.


Firstsource Solutions Debt-to-EBITDA Related Terms

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


Firstsource Solutions (NSE:FSL) Business Description

Traded in Other Exchanges
Address
Mindspace, Link Road, 5th Floor, Paradigm ‘B’ Wing, Malad (West), Mumbai, MH, IND, 400 064
Firstsource Solutions Ltd is engaged in the business of providing customer management services like contact centers, transaction processing, and debt collection services. The company's business segment includes Banking and Financial Services, Healthcare, Communication, Media and Technology, and Diverse Industries. It generates maximum revenue from the Banking and Financial Services segment. Geographically, it derives a majority of its revenue from the United States of America.

Firstsource Solutions (NSE:FSL) Headlines

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