New Zealand Rural Land Co (NZSE:NZL) Debt-to-EBITDA : 4.69 (As of Dec. 2023)

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What is New Zealand Rural Land Co Debt-to-EBITDA?

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

New Zealand Rural Land Co's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was NZ$44.67 Mil. New Zealand Rural Land Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was NZ$111.98 Mil. New Zealand Rural Land Co's annualized EBITDA for the quarter that ended in Dec. 2023 was NZ$33.37 Mil. New Zealand Rural Land Co's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 4.69.

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 New Zealand Rural Land Co's Debt-to-EBITDA or its related term are showing as below:

NZSE:NZL' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 2.43 Med: 4.56 Max: 6.69
Current: 6.69

During the past 2 years, the highest Debt-to-EBITDA Ratio of New Zealand Rural Land Co was 6.69. The lowest was 2.43. And the median was 4.56.

NZSE:NZL's Debt-to-EBITDA is ranked worse than
54.31% of 1265 companies
in the Real Estate industry
Industry Median: 5.75 vs NZSE:NZL: 6.69

New Zealand Rural Land Co Debt-to-EBITDA Historical Data

The historical data trend for New Zealand Rural Land 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.

New Zealand Rural Land Co Debt-to-EBITDA Chart

New Zealand Rural Land Co Annual Data

Trend

Jun22

Dec23

Debt-to-EBITDA

2.43

6.69

New Zealand Rural Land Co Semi-Annual Data
	Dec21	Jun22	Dec22	Jun23	Dec23
Debt-to-EBITDA	12.78	1.31	6.64	10.78	4.69

Competitive Comparison of New Zealand Rural Land Co's Debt-to-EBITDA

For the Real Estate Services subindustry, New Zealand Rural Land 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.

New Zealand Rural Land Co's Debt-to-EBITDA Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, New Zealand Rural Land Co's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where New Zealand Rural Land Co's Debt-to-EBITDA falls into.

New Zealand Rural Land Co Debt-to-EBITDA Calculation

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

New Zealand Rural Land Co's Debt-to-EBITDA for the fiscal year 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
	=	(44.665	+	111.984)	/	23.43
	=	6.69

New Zealand Rural Land 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
	=	(44.665	+	111.984)	/	33.37
	=	4.69

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.

New Zealand Rural Land Co (NZSE:NZL) 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.

New Zealand Rural Land Co Debt-to-EBITDA Related Terms

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

New Zealand Rural Land Co (NZSE:NZL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » New Zealand Rural Land Co Ltd (NZSE:NZL) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

8UK:Germany

Address

c/o Duncan Cotterill, Level 2, Chartered Accountants, 50 Customhouse Quay, Wellington, NZL, 6011

Website

https://www.nzrlc.co.nz

New Zealand Rural Land Co Ltd operates as a real estate company that offers investors exposure to rural land as an asset class without direct involvement in agricultural operations. Its principal activity is an investment in New Zealand's rural farmland. The company seeks an opportunity to focus on dairyland, due to a combination of recent legislative and bank lending changes.

New Zealand Rural Land Co (NZSE:NZL) Headlines

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