REACT Group (LSE:REAT) Debt-to-EBITDA : 0.39 (As of Sep. 2023)

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What is REACT Group Debt-to-EBITDA?

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

REACT Group's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was £0.20 Mil. REACT Group's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was £0.70 Mil. REACT Group's annualized EBITDA for the quarter that ended in Sep. 2023 was £2.34 Mil. REACT Group's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 was 0.39.

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

LSE:REAT' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.17 Med: 0.43 Max: 2.64
Current: 0.44

During the past 13 years, the highest Debt-to-EBITDA Ratio of REACT Group was 2.64. The lowest was 0.17. And the median was 0.43.

LSE:REAT's Debt-to-EBITDA is ranked better than
80.51% of 831 companies
in the Business Services industry
Industry Median: 1.93 vs LSE:REAT: 0.44

REACT Group Debt-to-EBITDA Historical Data

The historical data trend for REACT 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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REACT Group Debt-to-EBITDA Chart

REACT Group Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Debt-to-EBITDA

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0.17

0.43

2.64

0.44

REACT Group Semi-Annual Data
	Sep13	Mar14	Sep14	Mar15	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															0.29	0.28	1.96	0.56	0.39

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

For the Specialty Business Services subindustry, REACT 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.

REACT Group's Debt-to-EBITDA Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, REACT Group's Debt-to-EBITDA distribution charts can be found below:

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

REACT Group Debt-to-EBITDA Calculation

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

REACT Group's Debt-to-EBITDA for the fiscal year 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
	=	(0.201	+	0.703)	/	2.06
	=	0.44

REACT 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
	=	(0.201	+	0.703)	/	2.342
	=	0.39

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.

REACT Group (LSE:REAT) 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.

REACT Group Debt-to-EBITDA Related Terms

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

REACT Group (LSE:REAT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » REACT Group PLC (LSE:REAT) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

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Address

Holly House, Shady Lane, Birmingham, GBR, B44 9ER

Website

https://www.reactplc.co.uk

REACT Group PLC is engaged in providing cleaning, decontamination, and hygiene sector, including both contracted commercial cleaning and specialist emergency decontamination work. Its objective is to maintain and/or rapidly return its customers' property to safe, clean, operational use and do this through regular specialist cleaning and/or emergency response to potentially harmful incidents. The business operates through three divisions; commercial windows & cladding, hygiene & maintenance, and, emergency & decontamination. It has three operating segments; Contract Maintenance, Contract Reactive, and Ad Hoc work, out of which a majority of the revenue is generated from the contract maintenance segment.

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