Ambev (ABEV) Debt-to-EBITDA

: 0.13 (As of Dec. 2023)

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

Ambev's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $265 Mil. Ambev's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $450 Mil. Ambev's annualized EBITDA for the quarter that ended in Dec. 2023 was $5,678 Mil. Ambev's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 0.13.

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

ABEV' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.14 Med: 0.17 Max: 0.28
Current: 0.14

During the past 13 years, the highest Debt-to-EBITDA Ratio of Ambev was 0.28. The lowest was 0.14. And the median was 0.17.

ABEV's Debt-to-EBITDA is ranked better than
83.85% of 161 companies
in the Beverages - Alcoholic industry
Industry Median: 1.67 vs ABEV: 0.14

Ambev Debt-to-EBITDA Historical Data

The historical data trend for Ambev'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.

Ambev Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

0.16

0.23

0.15

0.17

0.14

Ambev Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-EBITDA																0.14	0.16	0.21	0.15	0.13

Competitive Comparison

For the Beverages - Brewers subindustry, Ambev'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.

Ambev Debt-to-EBITDA Distribution

For the Beverages - Alcoholic industry and Consumer Defensive sector, Ambev's Debt-to-EBITDA distribution charts can be found below:

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

Ambev Debt-to-EBITDA Calculation

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

Ambev'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
	=	(264.929	+	449.61)	/	4952.61
	=	0.14

Ambev'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
	=	(264.929	+	449.61)	/	5677.524
	=	0.13

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.

Ambev (NYSE:ABEV) 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.

Ambev Debt-to-EBITDA Related Terms

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Ambev (ABEV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Ambev SA (NYSE:ABEV) » Definitions » Debt-to-EBITDA

Traded in Other Exchanges

ABEV:Mexico AMNA:Germany ABEV3:Brazil ABEV:Argentina

Address

Rua Doutor Renato Paes de Barros, 1017, 3rd Floor, Sao Paulo, SP, BRA, 04530-001

Website

https://www.ambev.com.br

Ambev is the largest brewer in Latin America and the Caribbean and is Anheuser-Busch InBev's subsidiary in the region. It produces, distributes, and sells beer and PepsiCo products in Brazil and other Latin American countries and owns Argentina's largest brewer, Quinsa. Ambev was formed in 1999 through the merger of Brazil's two largest beverage companies, Brahma and Antarctica. In 2004, Ambev combined with Canadian brewer Labatt, giving Interbrew (now AB InBev) a controlling interest of 61.8% as at the end of 2022.