Suncor Energy (TSX:SU) Debt-to-EBITDA

: 0.74 (As of Dec. 2023)

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

Suncor Energy's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was C$842 Mil. Suncor Energy's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was C$14,565 Mil. Suncor Energy's annualized EBITDA for the quarter that ended in Dec. 2023 was C$20,740 Mil. Suncor Energy's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 0.74.

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

TSX:SU' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.71 Med: 1.4 Max: 4.86
Current: 0.87

During the past 13 years, the highest Debt-to-EBITDA Ratio of Suncor Energy was 4.86. The lowest was 0.71. And the median was 1.40.

TSX:SU's Debt-to-EBITDA is ranked better than
70.25% of 716 companies
in the Oil & Gas industry
Industry Median: 1.74 vs TSX:SU: 0.87

Suncor Energy Debt-to-EBITDA Historical Data

The historical data trend for Suncor Energy'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.

Suncor Energy Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

1.28

4.86

1.48

0.71

0.87

Suncor Energy 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																0.75	0.95	1.03	0.95	0.74

Competitive Comparison

For the Oil & Gas Integrated subindustry, Suncor Energy'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.

Suncor Energy Debt-to-EBITDA Distribution

For the Oil & Gas industry and Energy sector, Suncor Energy's Debt-to-EBITDA distribution charts can be found below:

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

Suncor Energy Debt-to-EBITDA Calculation

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

Suncor Energy'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
	=	(842	+	14565)	/	17810
	=	0.87

Suncor Energy'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
	=	(842	+	14565)	/	20740
	=	0.74

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.

Suncor Energy (TSX:SU) 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.

Suncor Energy Debt-to-EBITDA Related Terms

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

Suncor Energy (TSX:SU) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Suncor Energy Inc (TSX:SU) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

SU:USA SUU:Mexico SM3:Germany SM3:Germany

Address

150 - 6th Avenue S.W., P.O. Box 2844, Calgary, AB, CAN, T2P 3E3

Website

https://www.suncor.com

Suncor Energy Inc is an integrated energy company. The company's operations include oil sands development, production and upgrading, offshore oil and gas, petroleum refining in Canada and the U.S. and the company's Petro-Canada retail and wholesale distribution networks. The company is developing petroleum resources while advancing the transition to a low-emissions future through investment in power, renewable fuels and hydrogen. It also conducts energy trading activities focused principally on the marketing and trading of crude oil, natural gas, byproducts, refined products and power.