Sika AG (XSWX:SIKA) Debt-to-EBITDA

: 2.54 (As of Dec. 2023)

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

Sika AG's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was CHF1,129 Mil. Sika AG's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was CHF4,709 Mil. Sika AG's annualized EBITDA for the quarter that ended in Dec. 2023 was CHF2,295 Mil. Sika AG's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 2.54.

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

XSWX:SIKA' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.69 Med: 2.04 Max: 3.22
Current: 2.92

During the past 13 years, the highest Debt-to-EBITDA Ratio of Sika AG was 3.22. The lowest was 0.69. And the median was 2.04.

XSWX:SIKA's Debt-to-EBITDA is ranked worse than
59.23% of 1219 companies
in the Chemicals industry
Industry Median: 2.18 vs XSWX:SIKA: 2.92

Sika AG Debt-to-EBITDA Historical Data

The historical data trend for Sika AG'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.

Sika AG Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

3.22

2.79

2.08

2.01

2.92

Sika AG Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Debt-to-EBITDA																2.06	1.68	2.12	4.81	2.54

Competitive Comparison

For the Specialty Chemicals subindustry, Sika AG'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.

Sika AG Debt-to-EBITDA Distribution

For the Chemicals industry and Basic Materials sector, Sika AG's Debt-to-EBITDA distribution charts can be found below:

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

Sika AG Debt-to-EBITDA Calculation

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

Sika AG'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
	=	(1128.9	+	4709.2)	/	1997.7
	=	2.92

Sika AG'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
	=	(1128.9	+	4709.2)	/	2295.4
	=	2.54

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 two times the quarterly (Dec. 2023) EBITDA data.

Sika AG (XSWX:SIKA) 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.

Sika AG Debt-to-EBITDA Related Terms

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

Sika AG (XSWX:SIKA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Sika AG (XSWX:SIKA) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

SXYAY:USA SKFOF:USA SIKA:Mexico SIKAz:UK 0Z4C:UK SIKB:Germany

Address

Zugerstrasse 50, Baar, CHE, 6340

Website

https://www.sika.com

Sika AG manufactures and sells specialty chemical-based products. The majority of the company's revenue comes from the construction industry. Sika's products are used mainly for bonding, sealing, damping, reinforcing, and protecting in the building and motor vehicle industries. The firm produces additives for concrete, cement, and mortar production, waterproofing systems, roof waterproofing, flooring solutions, sealants, adhesive tapes, assembly foams and elastic adhesives for facade construction, interior and infrastructure construction, as well as concrete protection and repair solutions. The company's reportable segments are based on geography: EMEA, the Americas; Asia-Pacific; and global business. The EMEA segment generates the majority of revenue.

Sika AG (XSWX:SIKA) Headlines

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