Change Healthcare (Change Healthcare) Debt-to-EBITDA : 5.77 (As of Jun. 2022)

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What is Change Healthcare Debt-to-EBITDA?

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

Change Healthcare's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $25 Mil. Change Healthcare's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $4,535 Mil. Change Healthcare's annualized EBITDA for the quarter that ended in Jun. 2022 was $790 Mil. Change Healthcare's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2022 was 5.77.

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 Change Healthcare's Debt-to-EBITDA or its related term are showing as below:

CHNG' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -4.78 Med: 5.73 Max: 7.05
Current: 5.74

During the past 6 years, the highest Debt-to-EBITDA Ratio of Change Healthcare was 7.05. The lowest was -4.78. And the median was 5.73.

CHNG's Debt-to-EBITDA is not ranked
in the Healthcare Providers & Services industry.
Industry Median: 2.57 vs CHNG: 5.74

Change Healthcare Debt-to-EBITDA Historical Data

The historical data trend for Change Healthcare'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.

Change Healthcare Debt-to-EBITDA Chart

Change Healthcare Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Debt-to-EBITDA

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-4.78

7.05

5.73

Change Healthcare Quarterly Data
	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22
Debt-to-EBITDA	Get a 7-Day Free Trial														5.61	6.96	5.97	5.05	5.77

Competitive Comparison of Change Healthcare's Debt-to-EBITDA

For the Health Information Services subindustry, Change Healthcare'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.

Change Healthcare's Debt-to-EBITDA Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Change Healthcare's Debt-to-EBITDA distribution charts can be found below:

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

Change Healthcare Debt-to-EBITDA Calculation

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

Change Healthcare's Debt-to-EBITDA for the fiscal year that ended in Mar. 2022 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(31.732	+	4632.373)	/	813.56
	=	5.73

Change Healthcare's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2022 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(24.717	+	4535.145)	/	789.66
	=	5.77

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 (Jun. 2022) EBITDA data.

Change Healthcare (NAS:CHNG) 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.

Change Healthcare Debt-to-EBITDA Related Terms

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

Change Healthcare (Change Healthcare) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Change Healthcare Inc (NAS:CHNG) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

N/A

Address

424 Church Street, Suite 1400, Nashville, TN, USA, 37219

Website

https://www.changehealthcare.com

Change Healthcare is a spinoff of various healthcare processing and consulting services acquired by McKesson over numerous years. Recently, these processing assets were contributed to a joint venture and in June 2019 public shares were issued with McKesson retaining the majority interest. As of the end of the March 2020 quarter, McKesson distributed all its interest in the public processor. Core services consist of insurance (healthcare) claim clearinghouse for healthcare payers in addition to administrative and consulting services to assist healthcare providers improve reimbursement coding, billing, and collections.

Executives

Tracy Byers	officer: SVP and GM, Enterprise Imaging	C/O CHANGE HEALTHCARE INC. 424 CHURCH STREET, SUITE 1400 NASHVILLE TN 37219
Steven B. Martin	officer: EVP, Enterprise Technology	3055 LEBANON PIKE SUITE 1000 NASHVILLE TN 37214
Nella Domenici	director	C/O ALLIANCEBERNSTEIN, 1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105
Paul Rareshide	officer: SVP, Corporate Controller	C/O CHANGE HEALTHCARE INC. 3055 LEBANON PIKE, SUITE 1000 NASHVILLE TN 37214
Fredrik J Eliasson	officer: EVP & CFO	500 WATER STREET, JACKSONVILLE FL 32202
De Crescenzo Neil E.	director, officer: President & CEO	C/O CHANGE HEALTHCARE INC. 3055 LEBANON PIKE, SUITE 1000 NASHVILLE TN 37214
Diana Mckenzie	director	METLIFE, 200 PARK AVENUE, NEW YORK NY 10166
Roderick H. O'reilly	officer: See Remarks	C/O CHANGE HEALTHCARE INC., 3055 LEBANON PIKE, SUITE 1000, NASHVILLE TN 37214
August Calhoun	officer: See Remarks	C/O CHANGE HEALTHCARE INC. 3055 LEBANON PIKE, SUITE 1000 NASHVILLE TN 37214
Thomas Mcenery	officer: EVP & Chief Marketing Officer
Bansi Nagji	director	MCKESSON CORPORATION, 6555 STATE HIGHWAY 161, IRVING TX 75039
Alex P. Choy	officer: See Remarks	C/O CHANGE HEALTHCARE INC. 3055 LEBANON PIKE, SUITE 1000 NASHVILLE TN 37214
Linda Whitley-taylor	officer: EVP & Chief People Officer	C/O BENSON HILL, INC., 1001 NORTH WARSON ROAD, SAINT LOUIS MO 63132
Phillip W. Roe	director	20 BURTON HILLS BOULEVARD SUITE 100 NASHVILLE TN 37215
Kriten Joshi	officer: See Remarks	C/O CHANGE HEALTHCARE INC. 3055 LEBANON PIKE, SUITE 1000 NASHVILLE TN 37214