Loar Holdings (Loar Holdings) Debt-to-EBITDA : 4.35 (As of Mar. 2024)

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What is Loar Holdings Debt-to-EBITDA?

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

Loar Holdings's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $7.71 Mil. Loar Holdings's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $536.28 Mil. Loar Holdings's annualized EBITDA for the quarter that ended in Mar. 2024 was $125.20 Mil. Loar Holdings's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 was 4.35.

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 Loar Holdings's Debt-to-EBITDA or its related term are showing as below:

LOAR' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 5.07 Med: 5.92 Max: 17.38
Current: 17.38

During the past 2 years, the highest Debt-to-EBITDA Ratio of Loar Holdings was 17.38. The lowest was 5.07. And the median was 5.92.

LOAR's Debt-to-EBITDA is ranked worse than
93.36% of 226 companies
in the Aerospace & Defense industry
Industry Median: 2.285 vs LOAR: 17.38

Loar Holdings Debt-to-EBITDA Historical Data

The historical data trend for Loar Holdings'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.

Loar Holdings Debt-to-EBITDA Chart

Loar Holdings Annual Data

Trend

Dec22

Dec23

Debt-to-EBITDA

6.76

5.07

Loar Holdings Quarterly Data
	Dec22	Mar23	Dec23	Mar24
Debt-to-EBITDA	N/A	-	N/A	4.35

Competitive Comparison of Loar Holdings's Debt-to-EBITDA

For the Aerospace & Defense subindustry, Loar Holdings'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.

Loar Holdings's Debt-to-EBITDA Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Loar Holdings's Debt-to-EBITDA distribution charts can be found below:

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

Loar Holdings Debt-to-EBITDA Calculation

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

Loar Holdings'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
	=	(7.695	+	537.785)	/	107.515
	=	5.07

Loar Holdings'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
	=	(7.712	+	536.282)	/	125.2
	=	4.35

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.

Loar Holdings (NYSE:LOAR) 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.

Loar Holdings Debt-to-EBITDA Related Terms

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

Loar Holdings (Loar Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Loar Holdings Inc (NYSE:LOAR) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

N/A

Address

20 New King Street, White Plains, New York, NY, USA, 10604

Website

https://www.loargroup.com

Loar Holdings Inc in the design, manufacture, and sale of niche aerospace and defense components that are essential for today's aircraft and aerospace and defense systems. Its manufactured products includes auto throttles, lap-belt airbags, two- and three-point seat belts, water purification systems, fire barriers, polyimide washers and bushings, latches, hold-open and tie rods, temperature and fluid sensors and switches, carbon and metallic brake discs, fluid and pneumatic-based ice protection, RAM air components, sealing solutions and motion and actuation devices, among others. It operate across ten manufacturing facilities located in the United States, one manufacturing facility in Germany and one manufacturing facility in the United Kingdom (UK).

Loar Holdings (Loar Holdings) Headlines

From GuruFocus

Director M Crow Acquires 71,429 Shares of Loar Holdings Inc (LOAR)

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