Borr Drilling (OSL:BORR) Debt-to-EBITDA : 4.53 (As of Dec. 2023)

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What is Borr Drilling Debt-to-EBITDA?

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

Borr Drilling's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was kr880 Mil. Borr Drilling's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was kr17,077 Mil. Borr Drilling's annualized EBITDA for the quarter that ended in Dec. 2023 was kr3,967 Mil. Borr Drilling's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 4.53.

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

OSL:BORR' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -50.39 Med: -12.35 Max: 65.64
Current: 5.08

During the past 8 years, the highest Debt-to-EBITDA Ratio of Borr Drilling was 65.64. The lowest was -50.39. And the median was -12.35.

OSL:BORR's Debt-to-EBITDA is ranked worse than
84.51% of 723 companies
in the Oil & Gas industry
Industry Median: 1.74 vs OSL:BORR: 5.08

Borr Drilling Debt-to-EBITDA Historical Data

The historical data trend for Borr Drilling'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.

Borr Drilling Debt-to-EBITDA Chart

Borr Drilling Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

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-14.76

-19.87

65.64

-50.39

5.13

Borr Drilling Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial															9.59	6.17	5.09	4.84	4.53

Competitive Comparison of Borr Drilling's Debt-to-EBITDA

For the Oil & Gas Drilling subindustry, Borr Drilling'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.

Borr Drilling's Debt-to-EBITDA Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Borr Drilling's Debt-to-EBITDA distribution charts can be found below:

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

Borr Drilling Debt-to-EBITDA Calculation

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

Borr Drilling'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
	=	(879.82	+	17077.369)	/	3501.346
	=	5.13

Borr Drilling'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
	=	(879.82	+	17077.369)	/	3966.576
	=	4.53

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 (Dec. 2023) EBITDA data.

Borr Drilling (OSL:BORR) 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.

Borr Drilling Debt-to-EBITDA Related Terms

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

Borr Drilling (OSL:BORR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Borr Drilling Ltd (OSL:BORR) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

BORR:USA BDRILLo:Sweden BORRo:UK 0BDR:UK B2W:Germany

Address

9 Par-la-Ville Road, S.E. Pearman Building, 2nd Floor, Hamilton, BMU, HM11

Website

http://www.borrdrilling.com

Borr Drilling Ltd is a drilling contractor that owns and operates jack-up rigs of modern and high-specification designs providing drilling services to the oil and gas exploration and production industry. The company operates a fleet of 16 jack-up drilling rigs. Geographically the activities are carried out through Norway.