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West Fraser Timber Co.Ltd (TSX:WFG) Debt-to-EBITDA : 0.67 (As of Mar. 2024)


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What is West Fraser Timber Co.Ltd Debt-to-EBITDA?

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

West Fraser Timber Co.Ltd's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was C$406 Mil. West Fraser Timber Co.Ltd's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was C$302 Mil. West Fraser Timber Co.Ltd's annualized EBITDA for the quarter that ended in Mar. 2024 was C$1,056 Mil. West Fraser Timber Co.Ltd's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 was 0.67.

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 West Fraser Timber Co.Ltd's Debt-to-EBITDA or its related term are showing as below:

TSX:WFG' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.12   Med: 0.6   Max: 12.36
Current: 1.16

During the past 13 years, the highest Debt-to-EBITDA Ratio of West Fraser Timber Co.Ltd was 12.36. The lowest was 0.12. And the median was 0.60.

TSX:WFG's Debt-to-EBITDA is ranked better than
74.09% of 220 companies
in the Forest Products industry
Industry Median: 3.345 vs TSX:WFG: 1.16

West Fraser Timber Co.Ltd Debt-to-EBITDA Historical Data

The historical data trend for West Fraser Timber Co.Ltd'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.

West Fraser Timber Co.Ltd Debt-to-EBITDA Chart

West Fraser Timber Co.Ltd Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.36 0.50 0.12 0.17 1.60

West Fraser Timber Co.Ltd Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.62 -3.60 0.38 -2.21 0.67

Competitive Comparison of West Fraser Timber Co.Ltd's Debt-to-EBITDA

For the Lumber & Wood Production subindustry, West Fraser Timber Co.Ltd'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.


West Fraser Timber Co.Ltd's Debt-to-EBITDA Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, West Fraser Timber Co.Ltd's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where West Fraser Timber Co.Ltd's Debt-to-EBITDA falls into.



West Fraser Timber Co.Ltd Debt-to-EBITDA Calculation

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

West Fraser Timber Co.Ltd'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
=(419.921 + 301.86) / 452.119
=1.60

West Fraser Timber Co.Ltd's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(406.08 + 301.853) / 1055.808
=0.67

* 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.

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 (Mar. 2024) EBITDA data.


West Fraser Timber Co.Ltd  (TSX:WFG) 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.


West Fraser Timber Co.Ltd Debt-to-EBITDA Related Terms

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


West Fraser Timber Co.Ltd (TSX:WFG) Business Description

Traded in Other Exchanges
Address
c/o West Fraser Group, 858 Beatty Street, Vancouver, BC, CAN, V6B 1C1
West Fraser Timber is a softwood lumber company that also produces wood panels and pulp products. The company produces its wood products globally, with lumber mills in British Columbia, Alberta, Europe, and the southeastern United States. Following its acquisition of Norbord in 2021, West Fraser is now one of the largest oriented strand board, or OSB, producers in the world.

West Fraser Timber Co.Ltd (TSX:WFG) Headlines