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Aon (AON) Debt-to-EBITDA : 5.10 (As of Sep. 2024)


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What is Aon Debt-to-EBITDA?

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

Aon's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was $199 Mil. Aon's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was $17,802 Mil. Aon's annualized EBITDA for the quarter that ended in Sep. 2024 was $3,532 Mil. Aon's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2024 was 5.10.

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

AON' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 2.21   Med: 3.07   Max: 4.09
Current: 4.09

During the past 13 years, the highest Debt-to-EBITDA Ratio of Aon was 4.09. The lowest was 2.21. And the median was 3.07.

AON's Debt-to-EBITDA is ranked worse than
87.71% of 301 companies
in the Insurance industry
Industry Median: 1.21 vs AON: 4.09

Aon Debt-to-EBITDA Historical Data

The historical data trend for Aon'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.

Aon Debt-to-EBITDA Chart

Aon 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 3.13 2.78 4.04 3.05 3.08

Aon Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 4.08 3.76 2.66 4.22 5.10

Competitive Comparison of Aon's Debt-to-EBITDA

For the Insurance Brokers subindustry, Aon'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.


Aon's Debt-to-EBITDA Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Aon's Debt-to-EBITDA distribution charts can be found below:

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



Aon Debt-to-EBITDA Calculation

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

Aon'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
=(1386 + 10646) / 3909
=3.08

Aon's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(199 + 17802) / 3532
=5.10

* 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 (Sep. 2024) EBITDA data.


Aon  (NYSE:AON) 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.


Aon Debt-to-EBITDA Related Terms

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


Aon Business Description

Traded in Other Exchanges
Address
James Joyce Street, Metropolitan Building, Dublin 1, IRL, D01 K0Y8
Aon is a leading global provider of insurance and reinsurance brokerage and human resources solutions. Its operations are tilted toward its brokerage operations. Headquartered in London, Aon has about 50,000 employees and operations in over 120 countries.
Executives
Byron Spruell director 200 EAST RANDOLPH ST., CHICAGO IL 60601
Lisa Stevens officer: Chief People Officer 200 EAST RANDOLPH, CHICAGO IL 60601
Darren Zeidel officer: General Counsel 200 EAST RANDOLPH ST., CHICAGO IL 60640
Lester B Knight director C/O AON CORP, 200 EAST RANDOLPH STREET, CHICAGO IL 60601
Eric Andersen officer: CEO, Aon Benfield 200 EAST RANDOLPH ST., CHICAGO IL 60601
Christa Davies officer: EVP, Global Finance AON CORPORATE LAW DEPT, 200 EAST RANDOLPH ST, 8TH FL, CHICAGO IL 60601
Michael Neller officer: Principal Accounting Officer 200 EAST RANDOLPH ST., CHICAGO IL 60601
Sarah G Smith director C/O GOLDMAN SACHS & CO. LLC, 200 WEST STREET, NEW YORK NY 10282
Mindy F. Simon officer: Chief Operating Officer FOUR EMBARCADERO CENTER, SUITE 2100, SAN FRANCISCO CA 94111
Adriana Karaboutis director C/O BIOGEN IDEC INC., 225 BINNEY ST., CAMBRIDGE MA 02142
Jillian Slyfield officer: Chief Innovation Officer 200 E RANDOLPH ST., CHICAGO IL 60601
J Michael Losh director H.B. FULLER COMPANY, P.O. BOX 64683, ST. PAUL MN 55164-0683
James Platt officer: Chief Operating Officer THE LEADENHALL BUILDING, 122 LEADENHALL ST., LONDON X0 EC3V 4AN
John G Bruno officer: Executive Vice President, CIO
Carolyn Y Woo director 801 E. 86TH AVENUE, MERRILLVILLE IN 4641-