Vital Chemtech (NSE:VITAL) Debt-to-EBITDA : 3.10 (As of Sep. 2023)

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What is Vital Chemtech Debt-to-EBITDA?

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

Vital Chemtech's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was ₹29 Mil. Vital Chemtech's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was ₹194 Mil. Vital Chemtech's annualized EBITDA for the quarter that ended in Sep. 2023 was ₹72 Mil. Vital Chemtech's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 was 3.09.

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

NSE:VITAL' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.53 Med: 2.1 Max: 3.17
Current: 2.58

During the past 4 years, the highest Debt-to-EBITDA Ratio of Vital Chemtech was 3.17. The lowest was 1.53. And the median was 2.10.

NSE:VITAL's Debt-to-EBITDA is ranked worse than
54.09% of 1211 companies
in the Chemicals industry
Industry Median: 2.28 vs NSE:VITAL: 2.58

Vital Chemtech Debt-to-EBITDA Historical Data

The historical data trend for Vital Chemtech'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.

Vital Chemtech Debt-to-EBITDA Chart

Vital Chemtech Annual Data

Trend

Mar20

Mar21

Mar22

Mar23

Debt-to-EBITDA

2.20

1.53

3.17

2.00

Vital Chemtech Semi-Annual Data
	Mar20	Mar21	Mar22	Sep22	Mar23	Sep23
Debt-to-EBITDA	Get a 7-Day Free Trial			N/A	N/A	-	2.86	3.10

Competitive Comparison of Vital Chemtech's Debt-to-EBITDA

For the Specialty Chemicals subindustry, Vital Chemtech'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.

Vital Chemtech's Debt-to-EBITDA Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Vital Chemtech's Debt-to-EBITDA distribution charts can be found below:

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

Vital Chemtech Debt-to-EBITDA Calculation

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

Vital Chemtech'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
	=	(65.231	+	222.815)	/	143.724
	=	2.00

Vital Chemtech's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(28.762	+	194.443)	/	72.122
	=	3.09

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 (Sep. 2023) EBITDA data.

Vital Chemtech (NSE:VITAL) 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.

Vital Chemtech Debt-to-EBITDA Related Terms

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

Vital Chemtech (NSE:VITAL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Vital Chemtech Ltd (NSE:VITAL) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

N/A

Address

S. G. Highway, Opposite Karnavati Club, B-406, Mondeal Heights, Ahmedabad, GJ, IND, 380015

Website

https://www.vitalgroup.co.in

Vital Chemtech Ltd is engaged in the business of manufacturing, producing, refining, processing, formulating, mixing, enriching, mining, importing, exporting, acquiring, inventing, buying, selling, exchanging, distributing, and otherwise trading and dealing in all kinds of mixtures, formlations, intermediates, derivatives, compounds, phosphorous based chemicals, fine chemicals, heavy chemicals, valence, inorganic and organic chemicals, source materials, intermediates, ingredients, mixtures, derivatives and compounds. The company's Products include Phosphorus Derivatives, Industrial Chemicals, Specialty Chemicals & Intermediates, Organophosphates, Polymers & Dispersants, and Wellness Products.

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