Alcon (ALC) Debt-to-EBITDA : 5.97 (As of Dec. 2023)

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What is Alcon Debt-to-EBITDA?

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

Alcon's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $206 Mil. Alcon's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $4,929 Mil. Alcon's annualized EBITDA for the quarter that ended in Dec. 2023 was $860 Mil. Alcon's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 5.97.

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

ALC' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.1 Med: 2.55 Max: 4.84
Current: 4.84

During the past 8 years, the highest Debt-to-EBITDA Ratio of Alcon was 4.84. The lowest was 0.10. And the median was 2.55.

ALC's Debt-to-EBITDA is ranked worse than
84.85% of 429 companies
in the Medical Devices & Instruments industry
Industry Median: 1.24 vs ALC: 4.84

Alcon Debt-to-EBITDA Historical Data

The historical data trend for Alcon'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.

Alcon Debt-to-EBITDA Chart

Alcon Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

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3.15

4.04

2.55

2.95

2.29

Alcon 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	Get a 7-Day Free Trial															4.45	-	-	-	5.97

Competitive Comparison of Alcon's Debt-to-EBITDA

For the Medical Instruments & Supplies subindustry, Alcon'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.

Alcon's Debt-to-EBITDA Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Alcon's Debt-to-EBITDA distribution charts can be found below:

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

Alcon Debt-to-EBITDA Calculation

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

Alcon'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
	=	(206	+	4929)	/	2242
	=	2.29

Alcon'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
	=	(206	+	4929)	/	860
	=	5.97

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.

Alcon (NYSE:ALC) 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.

Alcon Debt-to-EBITDA Related Terms

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

Alcon (ALC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Alcon Inc (NYSE:ALC) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

ALC:Mexico ALCz:UK 0A0D:UK ALC:Switzerland

Address

Chemin de Blandonnet 8, Royce Bedward, Vernier, Geneva, CHE, 1214

Website

https://www.alcon.com

Alcon is one of the leading visioncare companies in the world. Following nine years as a Novartis subsidiary, it was spun off as a public company in April 2019. Alcon operates in two segments: visioncare and surgical. Visioncare comprises contact lenses, lenscare solutions, and a suite of ocular health products. With brands like Dailies, Total1, and Air Optix, Alcon controls one fourth of the U.S. contact lens market. Surgical comprises intraocular lenses, ophthalmic surgical equipment, and consumables used during surgeries. Its main products include Centurion, a phacoemulsification device used during cataract surgeries, and a portfolio of IOLs including PanOptix and Vivity. Alcon has one of the largest installed bases of eye surgical equipment in the world.