HireRight Holdings (HireRight Holdings) Debt-to-EBITDA : 5.66 (As of Dec. 2023)

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What is HireRight Holdings Debt-to-EBITDA?

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

HireRight Holdings's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $7.5 Mil. HireRight Holdings's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $726.8 Mil. HireRight Holdings's annualized EBITDA for the quarter that ended in Dec. 2023 was $129.7 Mil. HireRight Holdings's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 5.66.

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

HRT' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 3.95 Med: 5.26 Max: 15.99
Current: 5.26

During the past 5 years, the highest Debt-to-EBITDA Ratio of HireRight Holdings was 15.99. The lowest was 3.95. And the median was 5.26.

HRT's Debt-to-EBITDA is ranked worse than
80.46% of 829 companies
in the Business Services industry
Industry Median: 1.84 vs HRT: 5.26

HireRight Holdings Debt-to-EBITDA Historical Data

The historical data trend for HireRight Holdings'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.

HireRight Holdings Debt-to-EBITDA Chart

HireRight Holdings Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

11.35

15.99

5.18

3.95

5.26

HireRight Holdings Quarterly Data
	Dec19	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial											4.82	8.25	4.31	3.96	5.66

Competitive Comparison of HireRight Holdings's Debt-to-EBITDA

For the Staffing & Employment Services subindustry, HireRight Holdings'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.

HireRight Holdings's Debt-to-EBITDA Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, HireRight Holdings's Debt-to-EBITDA distribution charts can be found below:

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

HireRight Holdings Debt-to-EBITDA Calculation

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

HireRight Holdings'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
	=	(7.5	+	726.767)	/	139.654
	=	5.26

HireRight Holdings'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
	=	(7.5	+	726.767)	/	129.656
	=	5.66

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.

HireRight Holdings (NYSE:HRT) 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.

HireRight Holdings Debt-to-EBITDA Related Terms

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

HireRight Holdings (HireRight Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » HireRight Holdings Corp (NYSE:HRT) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

N/A

Address

100 Centerview Drive, Suite 300, Nashville, TN, USA, 37214

Website

https://www.hireright.com

HireRight Holdings Corp is a global provider of technology-driven workforce risk management and compliance solutions. It provides comprehensive background screening, verification, identification, monitoring, and drug and health screening services. It offers services via a unified global software and data platform that tightly integrates into its customers' human capital management (HCM) systems enabling effective and efficient workflows for workforce hiring, onboarding, and monitoring. The company's revenues is derived from contracts to provide services. Majority of the revenue is generated from United States.

Executives

Mary O'loughlin	officer: EVP, North America	100 CENTERVIEW DRIVE, SUITE 300, NASHVILLE TN 37214
Michael E Ensor	officer: SVP, Global Head of Operations	100 CENTERVIEW DRIVE, SUITE 300, NASHVILLE TN 37214
James R Daxner	officer: EVP, Global Head of Product	100 CENTERVIEW DRIVE, SUITE 300, NASHVILLE TN 37214
James Laplaine	director	100 CENTERVIEW DR,, NASHVILLE TN 37214
Lisa L Troe	director	12181 BLUFF CREEK DRIVE, 4TH FLOOR, LOS ANGELES CA 90094
Rjc Gis Holdings Llc	10 percent owner	401 QUAY COMMONS UNIT 1801, SARASOTA FL 34236
Venkat Bhamidipati	director	6220 AMERICA CENTER DRIVE, SAN JOSE CA 95002
Lawrence M Kutscher	director	ONE DIAMOND HILL RD, MURRAY HILL NJ 07974
Jeanne S. Conrad	10 percent owner	401 QUAY COMMONS UNIT 1801, SARASOTA FL 34236
Raymond W. Conrad	10 percent owner	401 QUAY COMMONS UNIT 1801, SARASOTA FL 34236
General Atlantic, L.p.	director, 10 percent owner	55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055
General Atlantic Genpar (bermuda), L.p.	director, 10 percent owner	C/O GENERAL ATLANTIC SERVICE COMPANY,LLC, 55 EAST 52ND ST. 32ND FLOOR, NEW YORK NY 10055
General Atlantic Partners (bermuda) Hrg Ii, L.p.	director, 10 percent owner	C/O CONYERS CLIENT SERVICES LIMITED, CLARENDON HOUSE, 2 CHURCH STREET, HAMILTON D0 HM11
General Atlantic (spv) Gp (bermuda), Llc	director, 10 percent owner	C/O CONYERS CLIENT SERVICES LIMITED, CLARENDON HOUSE, 2 CHURCH STREET, HAMILTON D0 HM11
Gap (bermuda) L.p.	director, 10 percent owner	C/O GENERAL ATLANTIC SERVICE COMPANY, 55 EAST 52ND ST. 32ND FLOOR, NEW YORK NY 10055