Marks & Spencer Group (LSE:MKS) Debt-to-EBITDA : 2.45 (As of Sep. 2023)

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What is Marks & Spencer Group Debt-to-EBITDA?

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

Marks & Spencer Group's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was £335 Mil. Marks & Spencer Group's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was £2,957 Mil. Marks & Spencer Group's annualized EBITDA for the quarter that ended in Sep. 2023 was £1,343 Mil. Marks & Spencer Group's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 was 2.45.

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

LSE:MKS' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.6 Med: 3.05 Max: 5.72
Current: 2.51

During the past 13 years, the highest Debt-to-EBITDA Ratio of Marks & Spencer Group was 5.72. The lowest was 1.60. And the median was 3.05.

LSE:MKS's Debt-to-EBITDA is ranked better than
53.09% of 842 companies
in the Retail - Cyclical industry
Industry Median: 2.685 vs LSE:MKS: 2.51

Marks & Spencer Group Debt-to-EBITDA Historical Data

The historical data trend for Marks & Spencer 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.

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Marks & Spencer Group Debt-to-EBITDA Chart

Marks & Spencer Group Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Debt-to-EBITDA

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4.13

3.83

5.01

3.20

2.90

Marks & Spencer Group Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Debt-to-EBITDA	Get a 7-Day Free Trial															3.64	3.37	3.32	2.83	2.45

Competitive Comparison of Marks & Spencer Group's Debt-to-EBITDA

For the Department Stores subindustry, Marks & Spencer 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.

Marks & Spencer Group's Debt-to-EBITDA Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Marks & Spencer Group's Debt-to-EBITDA distribution charts can be found below:

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

Marks & Spencer Group Debt-to-EBITDA Calculation

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

Marks & Spencer Group's Debt-to-EBITDA for the fiscal year that ended in Mar. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(444	+	3184)	/	1249.5
	=	2.90

Marks & Spencer Group's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(335.4	+	2956.5)	/	1342.8
	=	2.45

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 (Sep. 2023) EBITDA data.

Marks & Spencer Group (LSE:MKS) 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.

Marks & Spencer Group Debt-to-EBITDA Related Terms

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

Marks & Spencer Group (LSE:MKS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Marks & Spencer Group PLC (LSE:MKS) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

MAKSY:USA MAKSF:USA MKSl:UK MA6:Germany

Address

35 North Wharf Road, Waterside House, London, GBR, W2 1NW

Website

https://www.marksandspencer.com

M&S is a British multichannel retailer with stores across Europe, Asia, and the Middle East. The company sells into more than 60 countries from thousands of stores and several websites around the world and offers predominantly own-brand luxury food, clothing, and home products with the majority of sales coming from its U.K. operations. Marks & Spencer operates three business models—owned, franchise, and joint venture—in the U.K. and internationally. The online business globally is delivered through localized owned and franchised websites and partnerships. The food segment includes value products, convenient ready-made meals, and healthy items. The clothing and home division sells own-brand and high-quality womenswear, lingerie, menswear, kidswear, beauty, and home products.