Derwent London (LSE:DLN) Debt-to-EBITDA : -2.18 (As of Dec. 2023)

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What is Derwent London Debt-to-EBITDA?

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

Derwent London's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was £103.3 Mil. Derwent London's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was £1,267.4 Mil. Derwent London's annualized EBITDA for the quarter that ended in Dec. 2023 was £-629.2 Mil. Derwent London's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was -2.18.

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

LSE:DLN' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -19.82 Med: 1.75 Max: 11.56
Current: -3.12

During the past 13 years, the highest Debt-to-EBITDA Ratio of Derwent London was 11.56. The lowest was -19.82. And the median was 1.75.

LSE:DLN's Debt-to-EBITDA is ranked worse than
100% of 507 companies
in the REITs industry
Industry Median: 7.18 vs LSE:DLN: -3.12

Derwent London Debt-to-EBITDA Historical Data

The historical data trend for Derwent London'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.

Derwent London Debt-to-EBITDA Chart

Derwent London Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

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3.32

-19.82

4.76

-5.30

-3.13

Derwent London Semi-Annual Data
	Jun14	Dec14	Jun15	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															4.60	4.52	-1.62	-5.27	-2.18

Competitive Comparison of Derwent London's Debt-to-EBITDA

For the REIT - Office subindustry, Derwent London'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.

Derwent London's Debt-to-EBITDA Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Derwent London's Debt-to-EBITDA distribution charts can be found below:

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

Derwent London Debt-to-EBITDA Calculation

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

Derwent London'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
	=	(103.3	+	1267.4)	/	-438
	=	-3.13

Derwent London'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
	=	(103.3	+	1267.4)	/	-629.2
	=	-2.18

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.

Derwent London (LSE:DLN) 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.

Derwent London Debt-to-EBITDA Related Terms

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

Derwent London (LSE:DLN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Derwent London PLC (LSE:DLN) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

DWVYF:USA DLNl:UK DVK:Germany

Address

25 Savile Row, London, GBR, W1S 2ER

Website

https://www.derwentlondon.com

Derwent London PLC is a London-focused real estate investment trust. Derwent owns, manages, and refurbishes office real estate in Central London. Within this region, the majority of the company's assets are located in the districts of London's West End, such as Fitzrovia. Properties in London's Tech Belt and the City Borders also represent significant parts of the company's real estate portfolio. Derwent derives nearly all of its revenue from tenants in the form of rental income structured in mid-to-long-term leases. Office buildings in the central West End are responsible for the majority of revenue generated. Media and advertising companies, professional and business services firms, and retail head offices are all fairly evenly represented among the company's tenants.