Dr. Martens (LSE:DOCS) Debt-to-EBITDA : 3.34 (As of Sep. 2023)

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What is Dr. Martens Debt-to-EBITDA?

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

Dr. Martens's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was £73.0 Mil. Dr. Martens's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was £456.7 Mil. Dr. Martens's annualized EBITDA for the quarter that ended in Sep. 2023 was £158.6 Mil. Dr. Martens's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 was 3.34.

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 Dr. Martens's Debt-to-EBITDA or its related term are showing as below:

LSE:DOCS' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.96 Med: 1.58 Max: 2.56
Current: 2.35

During the past 6 years, the highest Debt-to-EBITDA Ratio of Dr. Martens was 2.56. The lowest was 0.96. And the median was 1.58.

LSE:DOCS's Debt-to-EBITDA is ranked better than
54.14% of 798 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 2.84 vs LSE:DOCS: 2.35

Dr. Martens Debt-to-EBITDA Historical Data

The historical data trend for Dr. Martens'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.

Dr. Martens Debt-to-EBITDA Chart

Dr. Martens Annual Data

Trend

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Debt-to-EBITDA

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0.96

1.07

2.56

1.49

1.90

Dr. Martens Semi-Annual Data
	Mar18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Debt-to-EBITDA	Get a 7-Day Free Trial						2.23	1.10	2.46	1.52	3.34

Competitive Comparison of Dr. Martens's Debt-to-EBITDA

For the Footwear & Accessories subindustry, Dr. Martens'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.

Dr. Martens's Debt-to-EBITDA Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Dr. Martens's Debt-to-EBITDA distribution charts can be found below:

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

Dr. Martens Debt-to-EBITDA Calculation

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

Dr. Martens'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
	=	(28.1	+	417.7)	/	235
	=	1.90

Dr. Martens'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
	=	(73	+	456.7)	/	158.6
	=	3.34

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.

Dr. Martens (LSE:DOCS) 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.

Dr. Martens Debt-to-EBITDA Related Terms

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

Dr. Martens (LSE:DOCS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Dr. Martens PLC (LSE:DOCS) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

DRMTY:USA DOCMF:USA DOCSl:UK 3U2:Germany

Address

28 Jamestown Road, Camden, London, GBR, NW1 7BY

Website

https://www.drmartensplc.com

Dr. Martens PLC is engaged in the business of footwear. Its product segments include Originals, Fusion, Kids and Casual, and a complementary range of Accessories. Geographically, it derives a majority of revenue from EMEA and also has a presence in the Americas and APAC.