GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Radian Group Inc (NYSE:RDN) » Definitions » Debt-to-EBITDA

RDN (Radian Group) Debt-to-EBITDA : 2.32 (As of Jun. 2024)


View and export this data going back to 1992. Start your Free Trial

What is Radian Group Debt-to-EBITDA?

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

Radian Group's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was $490 Mil. Radian Group's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was $1,509 Mil. Radian Group's annualized EBITDA for the quarter that ended in Jun. 2024 was $861 Mil. Radian Group's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2024 was 2.32.

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

RDN' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.05   Med: 1.69   Max: 2.54
Current: 2.29

During the past 13 years, the highest Debt-to-EBITDA Ratio of Radian Group was 2.54. The lowest was 1.05. And the median was 1.69.

RDN's Debt-to-EBITDA is ranked worse than
74.42% of 301 companies
in the Insurance industry
Industry Median: 1.21 vs RDN: 2.29

Radian Group Debt-to-EBITDA Historical Data

The historical data trend for Radian 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.

Radian Group Debt-to-EBITDA Chart

Radian Group 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 1.05 2.54 1.69 1.41 1.64

Radian Group 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 1.94 1.83 1.91 1.89 2.32

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

For the Insurance - Specialty subindustry, Radian 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.


Radian Group's Debt-to-EBITDA Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Radian Group's Debt-to-EBITDA distribution charts can be found below:

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



Radian Group Debt-to-EBITDA Calculation

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

Radian 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
=(0 + 1537.257) / 936.297
=1.64

Radian Group'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
=(489.8 + 1508.647) / 860.748
=2.32

* 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.


Radian Group  (NYSE:RDN) 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.


Radian Group Debt-to-EBITDA Related Terms

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


Radian Group Business Description

Traded in Other Exchanges
N/A
Address
550 East Swedesford Road, Suite 350, Wayne, PA, USA, 19087
Radian Group Inc provides mortgage insurance and services to the real estate and mortgage finance industries. Radian's mortgage insurance provides coverage to lending institutions throughout the United States. Its services include analytics and consulting for buyers and sellers of, and investors in, mortgage- and real estate-related loans and securities and other asset-backed securities. Insurance premiums account for more than three fourths of the company's revenue. Services revenue and investment income are the other principal sources of revenue. It operates in two segments: Mortgage and homegenius. The Mortgage segment earns the majority of revenue.
Executives
Derek Brummer officer: Chief Risk Officer RADIAN GROUP INC., 1601 MARKET ST, PHILADELPHIA PA 19103
Mary Dickerson officer: EVP Chief People Officer RADIAN GROUP INC., 1500 MARKET ST., #2050W, PHILADELPHIA PA 19102
Robert Quigley officer: Sr. Vice President, Controller C/O RADIAN,, 1500 MARKET ST., #2050W, PHILADELPHIA PA 19102
Eric Ray officer: Sr, Executive Vice President C/O RADIAN, 1500 MARKET ST., #2050W, PHILADELPHIA PA 19102
Edward J Hoffman officer: SVP, Secretary and General Cou 1601 MARKET STREET, PHILADELPHIA PA 19103
Sumita Pandit officer: Sr. EVP, Chief Growth Officer 550 EAST SWEDESFORD RD., #350, WAYNE PA 19087
Noel Joseph Spiegel director RADIAN GROUP INC., 1601 MARKET STREET, PHILADELPHIA PA 19103
Brien Mcmahon officer: EVP & Chief Franchise Officer 1500 MARKET ST., WEST TOWER, #2050, PHILADELPHIA PA 19102
Lisa Mumford director 6 BEACHWOOD COURT, DIX HILLS NY 11746
Gregory Serio director RADIAN GROUP INC., 1601 MARKET ST., PHILADELPHIA PA 19103
Howard Bernard Culang director 9 MARISSA COURT, ATLANTIC HIGHLANDS NJ 07716
Lisa Hess director RADIAN GROUP, 1601 MARKET ST, PHILADELPHIA PA 19103
Margaret Anne Leyden director 550 E. SWEDESFORD RD.,, STE 350, WAYNE PA 19087
Fawad Ahmad director C/) RADIAN GROUP INC., 550 E. SWEDESFORD RD., #350, WAYNE PA 19087
Richard G Thornberry director, officer: Chief Executive Officer RADIAN, 1601 MARKET ST, PHILADELPHIA PA 19103