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FOUR (Shift4 Payments) Debt-to-EBITDA : 3.43 (As of Jun. 2024)


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What is Shift4 Payments Debt-to-EBITDA?

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

Shift4 Payments's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was $9 Mil. Shift4 Payments's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was $1,779 Mil. Shift4 Payments's annualized EBITDA for the quarter that ended in Jun. 2024 was $522 Mil. Shift4 Payments's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2024 was 3.42.

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 Shift4 Payments's Debt-to-EBITDA or its related term are showing as below:

FOUR' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 4.09   Med: 10.16   Max: 94.93
Current: 4.09

During the past 6 years, the highest Debt-to-EBITDA Ratio of Shift4 Payments was 94.93. The lowest was 4.09. And the median was 10.16.

FOUR's Debt-to-EBITDA is ranked worse than
81.61% of 1642 companies
in the Software industry
Industry Median: 1.04 vs FOUR: 4.09

Shift4 Payments Debt-to-EBITDA Historical Data

The historical data trend for Shift4 Payments'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.

Shift4 Payments Debt-to-EBITDA Chart

Shift4 Payments Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Debt-to-EBITDA
Get a 7-Day Free Trial 10.82 94.93 31.85 6.58 4.85

Shift4 Payments Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 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 4.84 4.01 4.84 4.27 3.43

Competitive Comparison of Shift4 Payments's Debt-to-EBITDA

For the Software - Infrastructure subindustry, Shift4 Payments'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.


Shift4 Payments's Debt-to-EBITDA Distribution in the Software Industry

For the Software industry and Technology sector, Shift4 Payments's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Shift4 Payments's Debt-to-EBITDA falls into.



Shift4 Payments Debt-to-EBITDA Calculation

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

Shift4 Payments'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
=(7.8 + 1769) / 366.2
=4.85

Shift4 Payments'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
=(8.9 + 1778.7) / 522
=3.42

* 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.


Shift4 Payments  (NYSE:FOUR) 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.


Shift4 Payments Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Shift4 Payments's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.


Shift4 Payments Business Description

Traded in Other Exchanges
Address
3501 Corporate Parkway, Center Valley, PA, USA, 18034
Shift4 Payments Inc is provider of integrated payment processing and technology solutions. The company offers software providers a single integration to an end-to-end payments offering, a powerful gateway and a robust suite of technology solutions (including cloud enablement, business intelligence, analytics, and mobile) to enhance the value of their software suites and simplify payment acceptance. The company derives maximum revenue from United States.
Executives
Jordan Frankel officer: GC & Corporate Secretary C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109
Nancy Disman director 57 ROUND TREE DRIVE, MELVILLE NY 11747
David Taylor Lauber officer: Chief Strategy Officer C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109
Sarah Goldsmith-grover director C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109
Jared Isaacman director, 10 percent owner, officer: Chairman & CEO C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109
Sam Bakhshandehpour director THE NEW HOME COMPANY, 95 ENTERPRISE, SUITE 325, ALISO VIEJO CA 92656
Karen Roter Davis director C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING ST, ALLENTOWN PA 18109
Searchlight Capital Partners Ii Gp, Llc 10 percent owner 745 FIFTH AVENUE, 27TH FLOOR, NEW YORK NY 10151
Bradley Herring officer: CFO C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 16109
Searchlight Ii Gwn Gp, Llc 10 percent owner C/O SEARCHLIGHT CAPITAL PARTNERS, L.P.., 745 FIFTH AVENUE, 27TH FLOOR, NEW YORK NY 10151
Donald Isaacman director C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109
Searchlight Ii Gwn, L.p. 10 percent owner 745 FIFTH AVENUE, 27TH FLOOR, NEW YORK NY 10151
Kevin J. Cronic officer: Chief System Architect C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109
Searchlight Capital Ii Pv, L.p. 10 percent owner C/O SEARCHLIGHT CAPITAL PARTNERS, L.P., 745 FIFTH AVENUE, 27TH FLOOR, NEW YORK NY 10151
Steven M. Sommers officer: Chief Application Architect C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109