African Agriculture Holdings (African Agriculture Holdings) Debt-to-EBITDA : -0.31 (As of Sep. 2023)

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What is African Agriculture Holdings Debt-to-EBITDA?

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

African Agriculture Holdings's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $4.93 Mil. African Agriculture Holdings's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $7.01 Mil. African Agriculture Holdings's annualized EBITDA for the quarter that ended in Sep. 2023 was $-38.47 Mil. African Agriculture Holdings's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 was -0.31.

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

AAGR' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -6.6 Med: -0.29 Max: -0.27
Current: -0.42

During the past 3 years, the highest Debt-to-EBITDA Ratio of African Agriculture Holdings was -0.27. The lowest was -6.60. And the median was -0.29.

AAGR's Debt-to-EBITDA is ranked worse than
100% of 1425 companies
in the Consumer Packaged Goods industry
Industry Median: 2.14 vs AAGR: -0.42

African Agriculture Holdings Debt-to-EBITDA Historical Data

The historical data trend for African Agriculture 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.

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African Agriculture Holdings Debt-to-EBITDA Chart

African Agriculture Holdings Annual Data

Trend

Dec21

Dec22

Dec23

Debt-to-EBITDA

-6.60

-0.27

-0.29

African Agriculture Holdings Quarterly Data
	Dec21	Mar22	Jun22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial			N/A	-0.20	-0.22	-0.31	N/A

Competitive Comparison of African Agriculture Holdings's Debt-to-EBITDA

For the Farm Products subindustry, African Agriculture 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.

African Agriculture Holdings's Debt-to-EBITDA Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, African Agriculture Holdings's Debt-to-EBITDA distribution charts can be found below:

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

African Agriculture Holdings Debt-to-EBITDA Calculation

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

African Agriculture 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
	=	(4.917	+	6.819)	/	-41.045
	=	-0.29

African Agriculture Holdings's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(4.933	+	7.008)	/	-38.468
	=	-0.31

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 (Sep. 2023) EBITDA data.

African Agriculture Holdings (NAS:AAGR) 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.

African Agriculture Holdings Debt-to-EBITDA Related Terms

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

African Agriculture Holdings (African Agriculture Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » African Agriculture Holdings Inc (NAS:AAGR) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

N/A

Address

445 Park Avenue, Ninth Floor, New York, NY, USA, 10022

Website

African Agriculture Holdings Inc is a holding company that operates principally through its wholly-owned subsidiary, which is developing the company's initial commercial farming business based in northern Senegal focusing on the production and sale of alfalfa for cattle feed and nutrition purposes. The company will sell alfalfa to owners and suppliers of cattle for feed and nutritional purposes, primarily in Senegal and the surrounding regions in Africa, the Economic Community of West African States (ECOWAS) region and the Middle East.