Erayak Power Solution Group (Erayak Power Solution Group) Debt-to-EBITDA : 0.60 (As of Dec. 2023)

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What is Erayak Power Solution Group Debt-to-EBITDA?

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

Erayak Power Solution Group's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $0.30 Mil. Erayak Power Solution Group's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $1.87 Mil. Erayak Power Solution Group's annualized EBITDA for the quarter that ended in Dec. 2023 was $3.62 Mil. Erayak Power Solution Group's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 0.60.

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 Erayak Power Solution Group's Debt-to-EBITDA or its related term are showing as below:

RAYA' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.77 Med: 2.13 Max: 6.71
Current: 0.77

During the past 5 years, the highest Debt-to-EBITDA Ratio of Erayak Power Solution Group was 6.71. The lowest was 0.77. And the median was 2.13.

RAYA's Debt-to-EBITDA is ranked better than
68.78% of 2290 companies
in the Industrial Products industry
Industry Median: 1.75 vs RAYA: 0.77

Erayak Power Solution Group Debt-to-EBITDA Historical Data

The historical data trend for Erayak Power Solution Group'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.

Erayak Power Solution Group Debt-to-EBITDA Chart

Erayak Power Solution Group Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

6.71

3.95

2.13

2.07

0.77

Erayak Power Solution Group Semi-Annual Data
	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial				1.67	1.76	2.29	4.95	0.60

Competitive Comparison of Erayak Power Solution Group's Debt-to-EBITDA

For the Electrical Equipment & Parts subindustry, Erayak Power Solution Group'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.

Erayak Power Solution Group's Debt-to-EBITDA Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Erayak Power Solution Group's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Erayak Power Solution Group's Debt-to-EBITDA falls into.

Erayak Power Solution Group Debt-to-EBITDA Calculation

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

Erayak Power Solution Group'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
	=	(0.296	+	1.872)	/	2.805
	=	0.77

Erayak Power Solution Group'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
	=	(0.296	+	1.872)	/	3.624
	=	0.60

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.

Erayak Power Solution Group (NAS:RAYA) 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.

Erayak Power Solution Group Debt-to-EBITDA Related Terms

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

Erayak Power Solution Group (Erayak Power Solution Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Erayak Power Solution Group Inc (NAS:RAYA) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 528, 4th Avenue, Binhai Industrial Park, Zhejiang Province, Wenzhou, CHN, 325025

Website

https://www.erayakpower.com

Erayak Power Solution Group Inc engages in manufacturing, research and development, and wholesale and retail of power solution products. Its product portfolio includes sine wave and off-grid inverters, inverter and gasoline generators, battery, and smart chargers, and custom-designed products. It derives the majority revenue from three products namely inverters, chargers, and gasoline generators.