Colonial Motor Co (NZSE:CMO) Debt-to-EBITDA : 1.67 (As of Dec. 2023)

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What is Colonial Motor Co Debt-to-EBITDA?

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

Colonial Motor Co's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was NZ$65.6 Mil. Colonial Motor Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was NZ$20.7 Mil. Colonial Motor Co's annualized EBITDA for the quarter that ended in Dec. 2023 was NZ$51.8 Mil. Colonial Motor Co's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 1.67.

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 Colonial Motor Co's Debt-to-EBITDA or its related term are showing as below:

NZSE:CMO' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.59 Med: 1.55 Max: 2.23
Current: 1.44

During the past 13 years, the highest Debt-to-EBITDA Ratio of Colonial Motor Co was 2.23. The lowest was 0.59. And the median was 1.55.

NZSE:CMO's Debt-to-EBITDA is ranked better than
65.31% of 1055 companies
in the Vehicles & Parts industry
Industry Median: 2.35 vs NZSE:CMO: 1.44

Colonial Motor Co Debt-to-EBITDA Historical Data

The historical data trend for Colonial Motor Co'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.

Colonial Motor Co Debt-to-EBITDA Chart

Colonial Motor Co Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Debt-to-EBITDA

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2.21

2.18

1.82

0.59

1.10

Colonial Motor Co Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial															0.81	0.63	1.50	1.01	1.67

Competitive Comparison of Colonial Motor Co's Debt-to-EBITDA

For the Auto & Truck Dealerships subindustry, Colonial Motor Co'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.

Colonial Motor Co's Debt-to-EBITDA Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Colonial Motor Co's Debt-to-EBITDA distribution charts can be found below:

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

Colonial Motor Co Debt-to-EBITDA Calculation

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

Colonial Motor Co'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
	=	(23.549	+	45.333)	/	62.522
	=	1.10

Colonial Motor Co'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
	=	(65.649	+	20.745)	/	51.78
	=	1.67

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 (Dec. 2023) EBITDA data.

Colonial Motor Co (NZSE:CMO) 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.

Colonial Motor Co Debt-to-EBITDA Related Terms

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

Colonial Motor Co (NZSE:CMO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Colonial Motor Co Ltd (NZSE:CMO) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

N/A

Address

57 Courtenay Place, Level 6, PO Box 6159, Wellington, NZL, 6141

Website

https://www.colmotor.co.nz

Colonial Motor Co Ltd is a New Zealand based company engaged in the principal activity of operating franchised motor vehicle dealerships. It owns motor vehicle dealerships throughout the country and has dealerships selling heavy trucks and tractors. The company has many dealerships and has a primary focus on Ford. Also, the company provides administrative and financial services to the subsidiaries as well as leasing them at market rates for many of the properties. Substantial revenue is generated from the sale of goods.