The Honest Co (The Honest Co) Debt-to-EBITDA : 3.97 (As of Dec. 2023)

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What is The Honest Co Debt-to-EBITDA?

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

The Honest Co's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $8.1 Mil. The Honest Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $21.7 Mil. The Honest Co's annualized EBITDA for the quarter that ended in Dec. 2023 was $7.5 Mil. The Honest Co's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 3.97.

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 The Honest Co's Debt-to-EBITDA or its related term are showing as below:

HNST' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -4.42 Med: -1.15 Max: -0.8
Current: -0.83

During the past 5 years, the highest Debt-to-EBITDA Ratio of The Honest Co was -0.80. The lowest was -4.42. And the median was -1.15.

HNST's Debt-to-EBITDA is ranked worse than
100% of 1425 companies
in the Consumer Packaged Goods industry
Industry Median: 2.14 vs HNST: -0.83

The Honest Co Debt-to-EBITDA Historical Data

The historical data trend for The Honest 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.

The Honest Co Debt-to-EBITDA Chart

The Honest Co Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

-1.65

-4.42

-1.15

-0.80

-0.83

The Honest Co Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial												-0.78	-0.50	-0.67	-1.08	3.97

Competitive Comparison of The Honest Co's Debt-to-EBITDA

For the Household & Personal Products subindustry, The Honest 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.

The Honest Co's Debt-to-EBITDA Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, The Honest Co's Debt-to-EBITDA distribution charts can be found below:

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

The Honest Co Debt-to-EBITDA Calculation

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

The Honest 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
	=	(8.105	+	21.738)	/	-36.154
	=	-0.83

The Honest 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
	=	(8.105	+	21.738)	/	7.512
	=	3.97

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 (Dec. 2023) EBITDA data.

The Honest Co (NAS:HNST) 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.

The Honest Co Debt-to-EBITDA Related Terms

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

The Honest Co (The Honest Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » The Honest Co Inc (NAS:HNST) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

N/A

Address

12130 Millennium Drive, Suite 500, Los Angeles, CA, USA, 90094

Website

https://www.honest.com

The Honest Co Inc is a digitally-native consumer products company to make purpose-driven consumer products designed for all people. It is an omnichannel brand, ensuring its products are available wherever its consumers shop through company's Retail and Digital channels. It has three product categories namely; Diapers and Wipes, Skin and Personal Care, and Household and Wellness, out of which the majority of its revenue is generated from the sale of diapers and wipes. The company operates only in the United States.

Executives

Stephen Winchell	officer: EVP, Operations and R&D	12130 MILLENNIUM DRIVE, SUITE 500, LOS ANGELES CA 90094
Brendan Sheehey	officer: General Counsel	12130 MILLENNIUM DRIVE, #500, LOS ANGELES CA 90094
Jessica Warren	director, officer: Chief Creative Officer	12130 MILLENNIUM DRIVE, #500, LOS ANGELES CA 90094
Institutional Venture Management Xiii, Llc	10 percent owner	3000 SAND HILL ROAD, BUILDING 2, SUITE 250, MENLO PARK CA 94025
Kelly J. Kennedy	officer: EVP and CFO	C/O ANNIE'S, INC., 1610 FIFTH STREET, BERKELEY CA 94710
Rick Rexing	officer: Chief Revenue Officer	12130 MILLENNIUM DRIVE, #500, LOS ANGELES CA 90094
David Loretta	officer: Chief Financial Officer	C/O NORDSTROM, INC., 1700 SEVENTH AVENUE, SEATTLE WA 98101
Carla Vernon	officer: Chief Executive Officer	12130 MILLENNIUM DRIVE, SUITE 500, LOS ANGELES CA 90094
James D White	director	C/O CAVA GROUP, INC., 202-400-2920 14 RIDGE SQUARE NW, SUITE 5, WASHINGTON DC 20016
Janis Hoyt	officer: Chief People Officer	12130 MILLENNIUM DRIVE, #500, LOS ANGELES CA 90094
Nikolaos A Vlahos	director, officer: Chief Executive Officer	1221 BROADWAY, OAKLAND CA 94612
Katherine Barton	officer: Chief Growth Officer	12130 MILLENNIUM DRIVE, SUITE 500, LOS ANGELES CA 90094
Peter C. Gerstberger	officer: Chief Digital & Strat. Officer	12130 MILLENNIUM DRIVE, SUITE 500, LOS ANGELES CA 90094
Jack Hartung	director	1543 WAZEE STREET, SUITE 200, DENVER CO 80202
Julia M Brown	director	C/O ABLE BRANDS CO., 30 HUDSON YARDS, NEW YORK NY 10001