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EQR (Equity Residential) Debt-to-EBITDA : 3.92 (As of Jun. 2024)


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What is Equity Residential Debt-to-EBITDA?

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

Equity Residential's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was $171 Mil. Equity Residential's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was $7,295 Mil. Equity Residential's annualized EBITDA for the quarter that ended in Jun. 2024 was $1,903 Mil. Equity Residential's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2024 was 3.92.

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

EQR' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.59   Med: 4.12   Max: 5.77
Current: 3.13

During the past 13 years, the highest Debt-to-EBITDA Ratio of Equity Residential was 5.77. The lowest was 1.59. And the median was 4.12.

EQR's Debt-to-EBITDA is ranked better than
84.95% of 558 companies
in the REITs industry
Industry Median: 7.505 vs EQR: 3.13

Equity Residential Debt-to-EBITDA Historical Data

The historical data trend for Equity Residential'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.

Equity Residential Debt-to-EBITDA Chart

Equity Residential 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 4.31 3.93 3.43 3.89 3.76

Equity Residential 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 4.58 2.20 3.13 3.92 4.70

Competitive Comparison of Equity Residential's Debt-to-EBITDA

For the REIT - Residential subindustry, Equity Residential'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.


Equity Residential's Debt-to-EBITDA Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Equity Residential's Debt-to-EBITDA distribution charts can be found below:

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



Equity Residential Debt-to-EBITDA Calculation

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

Equity Residential'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
=(409.131 + 7292.959) / 2046.074
=3.76

Equity Residential's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(170.884 + 7295.481) / 1903.144
=3.92

* 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 (Jun. 2024) EBITDA data.


Equity Residential  (NYSE:EQR) 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.


Equity Residential Debt-to-EBITDA Related Terms

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


Equity Residential Business Description

Traded in Other Exchanges
Address
Two North Riverside Plaza, Chicago, IL, USA, 60606
Equity Residential owns a portfolio of 299 apartment communities with around 80,000 units and is developing three additional properties with 977 units. The company focuses on owning large, high-quality properties in the urban and suburban submarkets of Southern California, San Francisco, Washington, D.C., New York, Seattle, and Boston.
Executives
Catherine Carraway officer: Executive Vice President TWO NORTH RIVERSIDE PLAZA, SUITE 500, CHICAGO IL 60606
Alexander Brackenridge officer: Executive Vice President TWO NORTH RIVERSIDE PLAZA, SUITE 400, CHICAGO IL 60606
Scott Fenster officer: EVP & General Counsel TWO NORTH RIVERSIDE PLAZA, SUITE 400, CHICAGO IL 60606
Ian Kaufman officer: Chief Accounting Officer C/O EQUITY RESIDENTIAL, TWO NORTH RIVERSIDE PLAZA, SUITE 400, CHICAGO IL 60606
Michael L Manelis officer: Executive Vice President TWO NORTH RIVERSIDE PLAZA, SUITE 400, CHICAGO IL 60606
Robert Garechana officer: EVP & Chief Financial Officer TWO NORTH RIVERSIDE PLAZA, SUITE 400, CHICAGO IL 60606
Linda Bynoe director 980 N. MICHIGAN AVE, SUITE 1400, CHICAGO IL 60611
Mary Kay Haben director C/O EQUITY RESIDENTIAL, TWO NORTH RIVERSIDE PLAZA, SUITE 400, CHICAGO IL 60606
David J Neithercut director C/O EQUITY RESIDENTIAL, TWO NORTH RIVERSIDE PLAZA, SUITE 400, CHICAGO IL 60606
Mark S Shapiro director C/O RED ZONE LLC, 21300 REDSKIN PARK DRIVE, ASHBURN VA 20147
Christa L Sorenson officer: Executive Vice President TWO NORTH RIVERSIDE PLAZA, SUITE 400, CHICAGO IL 60606
Angela M Aman director RETAIL PROPERTIES OF AMERICA, INC., 2021 SPRING ROAD, SUITE 200, OAK BROOK IL 60523
Duckworth Connie K director EIGHT WINGS ENTERPRISES, 77 STONE AGTE LANE, LAKE FOREST IL 60045
Bradley A Keywell director
John E Neal director 2020 CALAMOS COURT, NAPERVILLE X1 60563