Lithium Americas (TSX:LAC) Debt-to-EBITDA : -0.06 (As of Dec. 2023)

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What is Lithium Americas Debt-to-EBITDA?

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

Lithium Americas's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was C$0.00 Mil. Lithium Americas's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was C$4.18 Mil. Lithium Americas's annualized EBITDA for the quarter that ended in Dec. 2023 was C$-69.51 Mil. Lithium Americas's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was -0.06.

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

TSX:LAC' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -0.95 Med: -0.95 Max: -0.22
Current: -0.22

During the past 4 years, the highest Debt-to-EBITDA Ratio of Lithium Americas was -0.22. The lowest was -0.95. And the median was -0.95.

TSX:LAC's Debt-to-EBITDA is ranked worse than
100% of 541 companies
in the Metals & Mining industry
Industry Median: 1.98 vs TSX:LAC: -0.22

Lithium Americas Debt-to-EBITDA Historical Data

The historical data trend for Lithium Americas'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.

Lithium Americas Debt-to-EBITDA Chart

Lithium Americas Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

-0.95

-0.72

-0.95

Lithium Americas Quarterly Data
	Dec20	Dec21	Mar22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial				-0.50	-1.08	N/A	-91.06	-0.06

Competitive Comparison of Lithium Americas's Debt-to-EBITDA

For the Other Industrial Metals & Mining subindustry, Lithium Americas'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.

Lithium Americas's Debt-to-EBITDA Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Lithium Americas's Debt-to-EBITDA distribution charts can be found below:

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

Lithium Americas Debt-to-EBITDA Calculation

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

Lithium Americas'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
	=	(0	+	4.176)	/	-4.388
	=	-0.95

Lithium Americas'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
	=	(0	+	4.176)	/	-69.512
	=	-0.06

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.

Lithium Americas (TSX:LAC) 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.

Lithium Americas Debt-to-EBITDA Related Terms

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

Lithium Americas (TSX:LAC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Lithium Americas Corp (TSX:LAC) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

LAC:USA WUC:Germany WUC:Germany

Address

900 West Hastings Street, Suite 300, Vancouver, BC, CAN, V6C 1E5

Website

https://www.lithiumamericas.com

Lithium Americas is a pure-play lithium producer. The firm owns one resource, Thacker Pass, that is located in northwest Nevada. Thacker Pass recently began construction and is expected to begin production in the mid-2020s. Thacker Pass is one of the largest known lithium resources in the world. The project would be the first clay-based asset to enter production, and we estimate it will be in bottom half of the global cost curve. Management plans to develop Thacker Pass into a fully integrated lithium production site, with downstream refining capabilities on site, and will sell into the lithium chemical market.