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Chow Tai Fook Jewellery Group (HKSE:01929) Debt-to-EBITDA : 1.83 (As of Sep. 2023)


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What is Chow Tai Fook Jewellery Group Debt-to-EBITDA?

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

Chow Tai Fook Jewellery Group's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was HK$24,979 Mil. Chow Tai Fook Jewellery Group's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was HK$2,607 Mil. Chow Tai Fook Jewellery Group's annualized EBITDA for the quarter that ended in Sep. 2023 was HK$15,087 Mil. Chow Tai Fook Jewellery Group's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 was 1.83.

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 Chow Tai Fook Jewellery Group's Debt-to-EBITDA or its related term are showing as below:

HKSE:01929' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.25   Med: 2.04   Max: 3.44
Current: 2.3

During the past 13 years, the highest Debt-to-EBITDA Ratio of Chow Tai Fook Jewellery Group was 3.44. The lowest was 1.25. And the median was 2.04.

HKSE:01929's Debt-to-EBITDA is ranked better than
56.43% of 840 companies
in the Retail - Cyclical industry
Industry Median: 2.675 vs HKSE:01929: 2.30

Chow Tai Fook Jewellery Group Debt-to-EBITDA Historical Data

The historical data trend for Chow Tai Fook Jewellery Group'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.

Chow Tai Fook Jewellery Group Debt-to-EBITDA Chart

Chow Tai Fook Jewellery Group Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.35 3.44 1.25 2.29 2.16

Chow Tai Fook Jewellery Group Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 1.90 2.40 2.54 2.50 1.83

Competitive Comparison of Chow Tai Fook Jewellery Group's Debt-to-EBITDA

For the Luxury Goods subindustry, Chow Tai Fook Jewellery Group'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.


Chow Tai Fook Jewellery Group's Debt-to-EBITDA Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Chow Tai Fook Jewellery Group's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Chow Tai Fook Jewellery Group's Debt-to-EBITDA falls into.



Chow Tai Fook Jewellery Group Debt-to-EBITDA Calculation

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

Chow Tai Fook Jewellery Group's Debt-to-EBITDA for the fiscal year that ended in Mar. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(20055.1 + 2051.1) / 10252.2
=2.16

Chow Tai Fook Jewellery Group's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(24979.4 + 2606.5) / 15086.8
=1.83

* 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 (Sep. 2023) EBITDA data.


Chow Tai Fook Jewellery Group  (HKSE:01929) 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.


Chow Tai Fook Jewellery Group Debt-to-EBITDA Related Terms

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


Chow Tai Fook Jewellery Group (HKSE:01929) Business Description

Traded in Other Exchanges
Address
16 - 18 Queen's Road Central, 33rd Floor, New World Tower, Central, Hong Kong, HKG
Chow Tai Fook Jewellery Group Ltd is engaged in the jewelry and watch business located in Mainland China. The company's geographical operating segment includes Mainland China and Hong Kong, Macau and other markets. It generates maximum revenue from Mainland China. Its product categories include ring, bands, necklace, pendant, earrings, chain, bracelet, and others. The company derives revenue from Gem-set, Gold products, Platinum/Karat gold products, and Watches.

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