Heico (HEI.A) Debt-to-EBITDA : 2.79 (As of Jan. 2024)

View and export this data going back to 1998. Start your Free Trial

What is Heico Debt-to-EBITDA?

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

Heico's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was $5 Mil. Heico's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was $2,496 Mil. Heico's annualized EBITDA for the quarter that ended in Jan. 2024 was $898 Mil. Heico's annualized Debt-to-EBITDA for the quarter that ended in Jan. 2024 was 2.79.

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

HEI.A' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.51 Med: 1.32 Max: 3.3
Current: 3.03

During the past 13 years, the highest Debt-to-EBITDA Ratio of Heico was 3.30. The lowest was 0.51. And the median was 1.32.

HEI.A's Debt-to-EBITDA is ranked worse than
61.37% of 233 companies
in the Aerospace & Defense industry
Industry Median: 2.41 vs HEI.A: 3.03

Heico Debt-to-EBITDA Historical Data

The historical data trend for Heico'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.

Heico Debt-to-EBITDA Chart

Heico Annual Data

Trend

Oct14

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

Debt-to-EBITDA

Get a 7-Day Free Trial

1.04

1.62

0.51

3.30

Heico Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Debt-to-EBITDA	Get a 7-Day Free Trial															1.25	1.01	1.69	2.67	2.79

Competitive Comparison of Heico's Debt-to-EBITDA

For the Aerospace & Defense subindustry, Heico'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.

Heico's Debt-to-EBITDA Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Heico's Debt-to-EBITDA distribution charts can be found below:

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

Heico Debt-to-EBITDA Calculation

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

Heico's Debt-to-EBITDA for the fiscal year that ended in Oct. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(38.304	+	2460.277)	/	758.31
	=	3.29

Heico's annualized Debt-to-EBITDA for the quarter that ended in Jan. 2024 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(4.739	+	2495.726)	/	897.576
	=	2.79

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 (Jan. 2024) EBITDA data.

Heico (NYSE:HEI.A) 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.

Heico Debt-to-EBITDA Related Terms

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

Heico (HEI.A) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Heico Corp (NYSE:HEI.A) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

HEI:USA HC1A:Germany HC1:Germany HC1:Germany

Address

3000 Taft Street, Hollywood, FL, USA, 33021

Website

https://www.heico.com

Heico is an aerospace and defense supplier that focuses on creating niche replacement parts for commercial aircraft and components for defense products. In commercial aerospace, Heico is the largest independent producer of replacement aircraft parts, primarily for engines. In the defense market, the company produces niche subcomponents used in targeting technology as well as simulation equipment, among other things. It operates as two segments: the flight support group,or FSG, and the electronic technologies group, or ETG, both of which supply the aerospace and defense sectors to different degrees. The company is highly acquisitive, focusing on companies in similar or adjacent markets that are generating strong cash flow with the potential for growth.