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Arena REIT (ASX:ARF) Debt-to-EBITDA : 7.02 (As of Dec. 2023)


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What is Arena REIT Debt-to-EBITDA?

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

Arena REIT's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$0.24 Mil. Arena REIT's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$354.68 Mil. Arena REIT's annualized EBITDA for the quarter that ended in Dec. 2023 was A$50.58 Mil. Arena REIT's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 7.02.

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 Arena REIT's Debt-to-EBITDA or its related term are showing as below:

ASX:ARF' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.95   Med: 2.27   Max: 6.17
Current: 6.17

During the past 11 years, the highest Debt-to-EBITDA Ratio of Arena REIT was 6.17. The lowest was 0.95. And the median was 2.27.

ASX:ARF's Debt-to-EBITDA is ranked better than
57.34% of 511 companies
in the REITs industry
Industry Median: 7.18 vs ASX:ARF: 6.17

Arena REIT Debt-to-EBITDA Historical Data

The historical data trend for Arena REIT'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.

Arena REIT Debt-to-EBITDA Chart

Arena REIT Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.81 2.60 1.42 0.95 4.04

Arena REIT 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 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 0.73 1.07 3.37 5.28 7.02

Competitive Comparison of Arena REIT's Debt-to-EBITDA

For the REIT - Specialty subindustry, Arena REIT'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.


Arena REIT's Debt-to-EBITDA Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Arena REIT's Debt-to-EBITDA distribution charts can be found below:

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



Arena REIT Debt-to-EBITDA Calculation

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

Arena REIT's Debt-to-EBITDA for the fiscal year that ended in Jun. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0.229 + 340.564) / 84.262
=4.04

Arena REIT'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
=(0.236 + 354.677) / 50.584
=7.02

* 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 two times the quarterly (Dec. 2023) EBITDA data.


Arena REIT  (ASX:ARF) 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.


Arena REIT Debt-to-EBITDA Related Terms

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


Arena REIT (ASX:ARF) Business Description

Traded in Other Exchanges
N/A
Address
8 Exhibition Street, Level 32, Melbourne, VIC, AUS, 3000
Arena REIT is a childcare centre-focused real estate investment trust, or REIT, in Australia. The trust owns a portfolio of more than 230 long day care centres in Australia which provide preschool care for children aged from 0 to 5 years. Arena also owns 10 healthcare centres but childcare comprises majority of its portfolio based on property value. The Australian childcare and healthcare sectors both receive a significant amount of government funding which they expect to continue due to the essential nature of the services they provide.

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