Hongli Group (Hongli Group) Debt-to-EBITDA : 5.06 (As of Dec. 2023)

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What is Hongli Group Debt-to-EBITDA?

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

Hongli Group's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $5.77 Mil. Hongli Group's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $3.34 Mil. Hongli Group's annualized EBITDA for the quarter that ended in Dec. 2023 was $1.80 Mil. Hongli Group's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 5.06.

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

HLP' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.05 Med: 1.38 Max: 4.02
Current: 3.48

During the past 5 years, the highest Debt-to-EBITDA Ratio of Hongli Group was 4.02. The lowest was 1.05. And the median was 1.38.

HLP's Debt-to-EBITDA is ranked worse than
59.63% of 488 companies
in the Steel industry
Industry Median: 2.63 vs HLP: 3.48

Hongli Group Debt-to-EBITDA Historical Data

The historical data trend for Hongli Group'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.

Hongli Group Debt-to-EBITDA Chart

Hongli Group Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

1.06

1.05

1.38

4.02

3.48

Hongli Group Semi-Annual Data
	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial				1.38	1.19	4.98	2.15	5.06

Competitive Comparison of Hongli Group's Debt-to-EBITDA

For the Steel subindustry, Hongli Group'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.

Hongli Group's Debt-to-EBITDA Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Hongli Group's Debt-to-EBITDA distribution charts can be found below:

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

Hongli Group Debt-to-EBITDA Calculation

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

Hongli Group'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
	=	(5.772	+	3.338)	/	2.621
	=	3.48

Hongli Group's annualized Debt-to-EBITDA for the quarter 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
	=	(5.772	+	3.338)	/	1.802
	=	5.06

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 two times the quarterly (Dec. 2023) EBITDA data.

Hongli Group (NAS:HLP) 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.

Hongli Group Debt-to-EBITDA Related Terms

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

Hongli Group (Hongli Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Hongli Group Inc (NAS:HLP) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

N/A

Address

Beisanli Street, Economic Development Zone, Changle County, Weifang, Shandong, CHN, 262400

Website

https://www.hlyxgg.com

Hongli Group Inc is a cold roll formed steel profile manufacturer in China. It customizes and manufactures cold roll formed steel profiles for machinery and equipment in a variety of sectors, including but not limited to mining and excavation, construction, agriculture and transportation.

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