Brookfield Business (TSX:BBUC) Debt-to-EBITDA : 18.87 (As of Dec. 2023)

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What is Brookfield Business Debt-to-EBITDA?

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

Brookfield Business's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was C$1,122 Mil. Brookfield Business's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was C$11,134 Mil. Brookfield Business's annualized EBITDA for the quarter that ended in Dec. 2023 was C$649 Mil. Brookfield Business's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 18.87.

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

TSX:BBUC' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 5.52 Med: 5.65 Max: 10.09
Current: 5.52

During the past 6 years, the highest Debt-to-EBITDA Ratio of Brookfield Business was 10.09. The lowest was 5.52. And the median was 5.65.

TSX:BBUC's Debt-to-EBITDA is ranked worse than
78.86% of 369 companies
in the Asset Management industry
Industry Median: 1.22 vs TSX:BBUC: 5.52

Brookfield Business Debt-to-EBITDA Historical Data

The historical data trend for Brookfield Business'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.

Brookfield Business Debt-to-EBITDA Chart

Brookfield Business Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

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5.65

5.56

9.15

10.09

5.55

Brookfield Business Quarterly Data
	Dec18	Dec19	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial											13.31	6.27	6.79	7.11	18.87

Competitive Comparison of Brookfield Business's Debt-to-EBITDA

For the Asset Management subindustry, Brookfield Business'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.

Brookfield Business's Debt-to-EBITDA Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Brookfield Business's Debt-to-EBITDA distribution charts can be found below:

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

Brookfield Business Debt-to-EBITDA Calculation

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

Brookfield Business'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
	=	(1121.578	+	11133.938)	/	2206.932
	=	5.55

Brookfield Business'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
	=	(1121.578	+	11133.938)	/	649.336
	=	18.87

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.

Brookfield Business (TSX:BBUC) 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.

Brookfield Business Debt-to-EBITDA Related Terms

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

Brookfield Business (TSX:BBUC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Brookfield Business Corp (TSX:BBUC) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

BBUC:USA

Address

1055 West Georgia Street, Suite 1500, P.O. Box 11117, Vancouver, BC, CAN, V6E 4N7

Website

https://www.bbu.brookfield.com

Brookfield Business Corp is a company established as a vehicle that owns and operates certain services and industrial operations on a global basis and an alternative vehicle for investors who prefer investing in its operations through a corporate structure. Its goal is to generate returns through long-term capital appreciation with a modest distribution yield.