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Wharf Real Estate Investment Co (HKSE:01997) Debt-to-EBITDA : 3.96 (As of Dec. 2023)


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What is Wharf Real Estate Investment Co Debt-to-EBITDA?

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

Wharf Real Estate Investment Co's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was HK$7,593 Mil. Wharf Real Estate Investment Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was HK$29,832 Mil. Wharf Real Estate Investment Co's annualized EBITDA for the quarter that ended in Dec. 2023 was HK$9,452 Mil. Wharf Real Estate Investment Co's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 3.96.

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 Wharf Real Estate Investment Co's Debt-to-EBITDA or its related term are showing as below:

HKSE:01997' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -9.45   Med: 2.05   Max: 7.04
Current: 4.52

During the past 10 years, the highest Debt-to-EBITDA Ratio of Wharf Real Estate Investment Co was 7.04. The lowest was -9.45. And the median was 2.05.

HKSE:01997's Debt-to-EBITDA is ranked better than
57.7% of 1267 companies
in the Real Estate industry
Industry Median: 5.55 vs HKSE:01997: 4.52

Wharf Real Estate Investment Co Debt-to-EBITDA Historical Data

The historical data trend for Wharf Real Estate Investment Co'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.

Wharf Real Estate Investment Co Debt-to-EBITDA Chart

Wharf Real Estate Investment Co 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 6.34 -9.45 7.04 -7.56 4.52

Wharf Real Estate Investment Co Semi-Annual Data
Dec14 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 8.64 -63.37 -4.03 5.63 3.96

Competitive Comparison of Wharf Real Estate Investment Co's Debt-to-EBITDA

For the Real Estate Services subindustry, Wharf Real Estate Investment Co'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.


Wharf Real Estate Investment Co's Debt-to-EBITDA Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Wharf Real Estate Investment Co's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Wharf Real Estate Investment Co's Debt-to-EBITDA falls into.



Wharf Real Estate Investment Co Debt-to-EBITDA Calculation

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

Wharf Real Estate Investment Co'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
=(7593 + 29832) / 8289
=4.52

Wharf Real Estate Investment Co'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
=(7593 + 29832) / 9452
=3.96

* 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.


Wharf Real Estate Investment Co  (HKSE:01997) 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.


Wharf Real Estate Investment Co Debt-to-EBITDA Related Terms

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


Wharf Real Estate Investment Co (HKSE:01997) Business Description

Traded in Other Exchanges
Address
https://www.wharfreic.com/en/investor/reports, 16th Floor, Ocean Centre, Harbour City, Kowloon, Hong Kong, HKG
Wharf spun off Wharf Real Estate Investment Co in November 2017. It is a leading property investor with a focus in prime retail assets in Hong Kong. Rental income from two flagship assets Harbour City and Times Square account for around 80% of revenue. The balance is made up of The Murray hotel, a suburban mall in Plaza Hollywood, two offices in Central CBD. The group also holds two malls in Singapore and a mixed-development in Suzhou. Wharf was originally a shipping company but transformed into a property developer and investor in the 1960s by redeveloping its unused industrial assets, many located in city-center and waterfront locations. The Harbour City site was previously wharfs, and the Times Square site was a tram depot in the 1970s. Wheelock holds a 45% stake in WREIC.

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