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Rackspace Technology (Rackspace Technology) Debt-to-EBITDA : 4.50 (As of Dec. 2023)


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What is Rackspace Technology Debt-to-EBITDA?

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

Rackspace Technology's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $159 Mil. Rackspace Technology's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $3,275 Mil. Rackspace Technology's annualized EBITDA for the quarter that ended in Dec. 2023 was $764 Mil. Rackspace Technology's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 4.50.

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 Rackspace Technology's Debt-to-EBITDA or its related term are showing as below:

RXT' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -18.08   Med: 6.97   Max: 10.98
Current: -18.08

During the past 7 years, the highest Debt-to-EBITDA Ratio of Rackspace Technology was 10.98. The lowest was -18.08. And the median was 6.97.

RXT's Debt-to-EBITDA is ranked worse than
100% of 1598 companies
in the Software industry
Industry Median: 1.06 vs RXT: -18.08

Rackspace Technology Debt-to-EBITDA Historical Data

The historical data trend for Rackspace Technology'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.

Rackspace Technology Debt-to-EBITDA Chart

Rackspace Technology Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Debt-to-EBITDA
Get a 7-Day Free Trial 5.69 8.24 9.02 -16.13 -18.08

Rackspace Technology 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -8.52 -2.13 6.10 -11.22 4.50

Competitive Comparison of Rackspace Technology's Debt-to-EBITDA

For the Software - Infrastructure subindustry, Rackspace Technology'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.


Rackspace Technology's Debt-to-EBITDA Distribution in the Software Industry

For the Software industry and Technology sector, Rackspace Technology's Debt-to-EBITDA distribution charts can be found below:

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



Rackspace Technology Debt-to-EBITDA Calculation

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

Rackspace Technology'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
=(158.8 + 3274.6) / -189.9
=-18.08

Rackspace Technology'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
=(158.8 + 3274.6) / 763.6
=4.50

* 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.

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.


Rackspace Technology  (NAS:RXT) 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.


Rackspace Technology Debt-to-EBITDA Related Terms

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


Rackspace Technology (Rackspace Technology) Business Description

Traded in Other Exchanges
N/A
Address
1 Fanatical Place, City of Windcrest, San Antonio, TX, USA, 78218
Rackspace Technology Inc is an end-to-end multi cloud technology services company. It designs, builds and operates its customers' cloud environments across all technology platforms, irrespective of technology stack or deployment model. The company's solutions include Application Services; Data; Colocation; Managed Cloud; Managed Hosting; Professional Services; and Security & Compliance. It operates in three reportable segments Multicloud Services; Apps & Cross-Platform; and OpenStack Public Cloud. It generates revenue through the sale of consumption-based contracts for its services offerings and from the sale of professional services related to designing and building custom solutions.
Executives
Srini Koushik officer: Chief Technology Officer 1 FANATICAL PLACE, CITY OF WINDCREST, SAN ANTONIO TX 78218
Dharmendra Kumar Sinha officer: EVP, President, Public Cloud C/O COGNIZANT TECHNOLOGY SOLUTIONS CORP, 300 FRANK W. BURR BLVD., STE. 36, 6 FL., TEANECK NJ 07666
Amar Maletira officer: President & CFO C/O VIAVI SOLUTIONS INC., 430 NORTH MCCARTHY BOULEVARD, MILPITAS CA 95035
Mark A. Marino other: Vice President & CAO 1 FANATICAL PLACE, CITY OF WINDCREST, SAN ANTONIO TX 78218
Casey L. Shilling officer: SVP - Chief Marketing Officer 1 FANATICAL PLACE, CITY OF WINDCREST, SAN ANTONIO TX 78218
Rackspace Technology, Inc. director 1 FANATICAL PLACE, CITY OF WINDCREST, SAN ANTONIO TX 78218
Anthony C. Roberts director 1 FANATICAL PLACE, SAN ANTONIO TX 78218
Betsy S Atkins director
Anthony Scott director 25501 WEST VALLEY PARKWAY, OLATHE KS 66061
Kellie Teal-guess officer: Chief Human Resources Officer 1 FANATICAL PLACE, C/O RACKSPACE TECHNOLOGY, INC., SAN ANTONIO TX 78218
Brian Lillie officer: EVP, President Private Cloud 1485 BROOKMILL ROAD, LOS ALTOS CA 94024
Naushaza Molu officer: EVP, Chief Financial Officer 1 FANATICAL PLACE, SAN ANTONIO TX 78218
Shashank Samant director 6600 NORTH MILITARY TRAIL, LEGAL DEPARTMENT, BOCA RATON FL 33496
Gregory S. Hrncir officer: SVP - Chief Operations Officer 1 FANATICAL PLACE, CITY OF WINDCREST, SAN ANTONIO TX 78218
Timothy Campos director C/O JDS UNIPHASE CORPORATION, 430 N MCCARTHY BOULEVARD, MILPITAS CA 95035

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