Forvia SE (XPAR:FRVIA) Debt-to-EBITDA : 4.03 (As of Dec. 2023)

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What is Forvia SE Debt-to-EBITDA?

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

Forvia SE's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was €1,759 Mil. Forvia SE's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was €9,453 Mil. Forvia SE's annualized EBITDA for the quarter that ended in Dec. 2023 was €2,785 Mil. Forvia SE's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 4.03.

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 Forvia SE's Debt-to-EBITDA or its related term are showing as below:

XPAR:FRVIA' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.09 Med: 2.37 Max: 6.61
Current: 4.39

During the past 13 years, the highest Debt-to-EBITDA Ratio of Forvia SE was 6.61. The lowest was 1.09. And the median was 2.37.

XPAR:FRVIA's Debt-to-EBITDA is ranked worse than
75.31% of 1049 companies
in the Vehicles & Parts industry
Industry Median: 2.39 vs XPAR:FRVIA: 4.39

Forvia SE Debt-to-EBITDA Historical Data

The historical data trend for Forvia SE'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.

Forvia SE Debt-to-EBITDA Chart

Forvia SE Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

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2.29

4.86

5.26

6.61

4.39

Forvia SE Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial															6.45	8.73	5.44	4.97	4.03

Competitive Comparison of Forvia SE's Debt-to-EBITDA

For the Auto Parts subindustry, Forvia SE'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.

Forvia SE's Debt-to-EBITDA Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Forvia SE's Debt-to-EBITDA distribution charts can be found below:

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

Forvia SE Debt-to-EBITDA Calculation

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

Forvia SE'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
	=	(1759.4	+	9452.5)	/	2554.6
	=	4.39

Forvia SE'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
	=	(1759.4	+	9452.5)	/	2785.4
	=	4.03

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.

Forvia SE (XPAR:FRVIA) 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.

Forvia SE Debt-to-EBITDA Related Terms

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

Forvia SE (XPAR:FRVIA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Forvia SE (XPAR:FRVIA) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

FURCF:USA 1FRVIA:Italy FRVIAp:UK 0MGR:UK FAU:Germany

Address

23-27 avenue des Champs-Pierreux, Nanterre, FRA, 92000

Website

https://www.faurecia.com

Forvia operates in automotive seating, interior systems, emission control technologies, electronics, lighting, and a segment called lifecycle solutions that does automotive-related recycling. The company has a global presence, with over 300 industrial facilities and 63 R&D centers in more than 40 countries, but much of its workforce is located in high-cost countries. Forvia's five largest customers by percentage of 2022 revenue are Volkswagen at 15.4%, Stellantis at 11.7%, Ford at 7.7%, the Renault-Nissan-Mitsubishi Alliance at 6.2%, and Mercedes-Benz at 6.1%. Geographically, Europe accounted for 44% of 2022 revenue, followed by North America at 25%, China at 21%, and all other regions at 10%.

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