Sonam (NSE:SONAMLTD) Debt-to-EBITDA : 2.78 (As of Mar. 2023)

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What is Sonam Debt-to-EBITDA?

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

Sonam's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2023 was ₹196.7 Mil. Sonam's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2023 was ₹61.0 Mil. Sonam's annualized EBITDA for the quarter that ended in Mar. 2023 was ₹92.8 Mil. Sonam's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2023 was 2.78.

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

NSE:SONAMLTD' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.81 Med: 3.6 Max: 5.4
Current: 2.78

During the past 11 years, the highest Debt-to-EBITDA Ratio of Sonam was 5.40. The lowest was 1.81. And the median was 3.60.

NSE:SONAMLTD's Debt-to-EBITDA is ranked worse than
61.13% of 337 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 1.99 vs NSE:SONAMLTD: 2.78

Sonam Debt-to-EBITDA Historical Data

The historical data trend for Sonam'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.

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Sonam Debt-to-EBITDA Chart

Sonam Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Debt-to-EBITDA

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1.81

3.59

3.83

3.45

2.78

Sonam Semi-Annual Data
	Mar13	Mar14	Mar15	Mar16	Mar17	Mar18	Mar19	Mar20	Mar21	Mar22	Mar23
Debt-to-EBITDA	Get a 7-Day Free Trial						1.81	3.59	3.83	3.45	2.78

Competitive Comparison of Sonam's Debt-to-EBITDA

For the Furnishings, Fixtures & Appliances subindustry, Sonam'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.

Sonam's Debt-to-EBITDA Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Sonam's Debt-to-EBITDA distribution charts can be found below:

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

Sonam Debt-to-EBITDA Calculation

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

Sonam'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
	=	(196.699	+	60.97)	/	92.823
	=	2.78

Sonam's annualized Debt-to-EBITDA for the quarter 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
	=	(196.699	+	60.97)	/	92.823
	=	2.78

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 (Mar. 2023) EBITDA data.

Sonam (NSE:SONAMLTD) 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.

Sonam Debt-to-EBITDA Related Terms

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

Sonam (NSE:SONAMLTD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Sonam Ltd (NSE:SONAMLTD) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

N/A

Address

Morbi Rajkot Highway, Survey No. 337/p, District Morbi, Village Lajai, Taluka Tankara, Rajkot, GJ, IND, 363 641

Website

https://www.sonamquartz.com

Sonam Ltd Formerly Sonam Clock Ltd operates in the clock manufacturing industry. The company is engaged in the Manufacturing and Sale of Horological items, Clocks, Clock Movements, and related items. Geographically, it operates only in India. Some of its product includes alarm time piece clock, classy dial clock, designer clock, divine tune clock, lcd clock, led digital clock, light sensor clock and others. Its products are sold under the brand name of Sonam, ampm, and Lotus.

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