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Sierra Metals (TSX:SMT) Debt-to-EBITDA : 2.16 (As of Dec. 2023)


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What is Sierra Metals Debt-to-EBITDA?

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

Sierra Metals's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was C$73.9 Mil. Sierra Metals's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was C$41.5 Mil. Sierra Metals's annualized EBITDA for the quarter that ended in Dec. 2023 was C$53.5 Mil. Sierra Metals's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 2.16.

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 Sierra Metals's Debt-to-EBITDA or its related term are showing as below:

TSX:SMT' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -3.98   Med: 1.38   Max: 5.88
Current: 1.95

During the past 13 years, the highest Debt-to-EBITDA Ratio of Sierra Metals was 5.88. The lowest was -3.98. And the median was 1.38.

TSX:SMT's Debt-to-EBITDA is ranked better than
50.09% of 539 companies
in the Metals & Mining industry
Industry Median: 1.98 vs TSX:SMT: 1.95

Sierra Metals Debt-to-EBITDA Historical Data

The historical data trend for Sierra Metals'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.

Sierra Metals Debt-to-EBITDA Chart

Sierra Metals Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.59 1.04 1.57 -3.98 1.79

Sierra Metals 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 -17.72 1.60 1.86 2.26 2.16

Competitive Comparison of Sierra Metals's Debt-to-EBITDA

For the Other Industrial Metals & Mining subindustry, Sierra Metals'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.


Sierra Metals's Debt-to-EBITDA Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Sierra Metals's Debt-to-EBITDA distribution charts can be found below:

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



Sierra Metals Debt-to-EBITDA Calculation

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

Sierra Metals'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
=(73.879 + 41.516) / 64.429
=1.79

Sierra Metals'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
=(73.879 + 41.516) / 53.476
=2.16

* 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.


Sierra Metals  (TSX:SMT) 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.


Sierra Metals Debt-to-EBITDA Related Terms

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


Sierra Metals (TSX:SMT) Business Description

Traded in Other Exchanges
Address
77 King Street West, Suite 400, Toronto, ON, CAN, M5K 0A1
Sierra Metals Inc is a precious and base metals producer in Peru and Mexico. The company acquires, explores, extracts, and produces mineral concentrates consisting of silver, copper, lead, zinc and gold. Sierra has interests in the Yauricocha Mine in Peru, and the Bolivar and Cusi Mines, Mexico. The majority of the revenue comes from selling the mineral concentrates to its customers in Peru.
Executives
J. Alberto Arias Director or Senior Officer of 10% Security Holder

Sierra Metals (TSX:SMT) Headlines