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ERJ (Embraer) Debt-to-EBITDA : 2.78 (As of Jun. 2024)


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What is Embraer Debt-to-EBITDA?

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

Embraer's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was $143 Mil. Embraer's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was $2,616 Mil. Embraer's annualized EBITDA for the quarter that ended in Jun. 2024 was $993 Mil. Embraer's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2024 was 2.78.

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

ERJ' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -36.6   Med: 5.3   Max: 15.8
Current: 6.98

During the past 13 years, the highest Debt-to-EBITDA Ratio of Embraer was 15.80. The lowest was -36.60. And the median was 5.30.

ERJ's Debt-to-EBITDA is ranked worse than
82.02% of 228 companies
in the Aerospace & Defense industry
Industry Median: 2.15 vs ERJ: 6.98

Embraer Debt-to-EBITDA Historical Data

The historical data trend for Embraer'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.

Embraer Debt-to-EBITDA Chart

Embraer 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 0.64 -36.60 8.52 15.17 5.11

Embraer Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Dec23 Mar24 Jun24
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 38.57 - N/A 4.27 2.78

Competitive Comparison of Embraer's Debt-to-EBITDA

For the Aerospace & Defense subindustry, Embraer'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.


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

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

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



Embraer Debt-to-EBITDA Calculation

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

Embraer'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
=(140.9 + 2841.5) / 583.4
=5.11

Embraer'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
=(142.8 + 2615.6) / 992.8
=2.78

* 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.


Embraer  (NYSE:ERJ) 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.


Embraer Debt-to-EBITDA Related Terms

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


Embraer Business Description

Address
Avenida Dra. Ruth Cardoso, 8501, 30th Floor, Pinheiros, SP, BRA, 05425-070
Embraer SA based in Sao Paulo, Brazil, manufacturer of jets. Its focus is to achieve customer satisfaction with and services addressing the commercial airline, executive jets, and defense and security markets. It has developed a customer-centric technology-driven portfolio of commercial aviation products and services that allows it to build long-term relationships with clients in the commercial aviation, executive jets, and defense and security markets. It operates through the following segments: Commercial Aviation; Defense and Security, Executive Aviation, Service and Support, and Other Segments. The company generates maximum revenue from the Commercial Aviation segment.