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Sterling Check (Sterling Check) Debt-to-EBITDA : 15.55 (As of Mar. 2024)


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What is Sterling Check Debt-to-EBITDA?

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

Sterling Check's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $18.9 Mil. Sterling Check's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $547.8 Mil. Sterling Check's annualized EBITDA for the quarter that ended in Mar. 2024 was $36.4 Mil. Sterling Check's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 was 15.55.

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 Sterling Check's Debt-to-EBITDA or its related term are showing as below:

STER' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 3.99   Med: 6.02   Max: 10.21
Current: 5.96

During the past 5 years, the highest Debt-to-EBITDA Ratio of Sterling Check was 10.21. The lowest was 3.99. And the median was 6.02.

STER's Debt-to-EBITDA is ranked worse than
87.08% of 1602 companies
in the Software industry
Industry Median: 1.06 vs STER: 5.96

Sterling Check Debt-to-EBITDA Historical Data

The historical data trend for Sterling Check'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.

Sterling Check Debt-to-EBITDA Chart

Sterling Check Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Debt-to-EBITDA
8.30 10.21 6.02 3.99 4.55

Sterling Check Quarterly Data
Dec19 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 5.11 5.05 4.05 4.35 15.55

Competitive Comparison of Sterling Check's Debt-to-EBITDA

For the Software - Infrastructure subindustry, Sterling Check'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.


Sterling Check's Debt-to-EBITDA Distribution in the Software Industry

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

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



Sterling Check Debt-to-EBITDA Calculation

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

Sterling Check'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
=(19.219 + 487.066) / 111.337
=4.55

Sterling Check's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(18.879 + 547.848) / 36.436
=15.55

* 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 (Mar. 2024) EBITDA data.


Sterling Check  (NAS:STER) 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.


Sterling Check Debt-to-EBITDA Related Terms

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


Sterling Check (Sterling Check) Business Description

Traded in Other Exchanges
N/A
Address
1 State Street Plaza, 24th Floor, New York, NY, USA, 10004
Sterling Check Corp is a global provider of technology-enabled background and identity verification services. It offers a hiring and risk management solution that begins with identity verification, followed by criminal background screening, credential verification, drug and health screening, processing of employee documentation required for onboarding, and ongoing risk monitoring. Its services are delivered through a purpose-built, proprietary, cloud-based technology platform that empowers organizations with real-time and data-driven insights to conduct and manage their employment screening programs.
Executives
Goldman Sachs Group Inc 10 percent owner 200 WEST STREET, NEW YORK NY 10282
Adrian M Jones director C/O GOLDMAN, SACHS & CO., 85 BROAD STREET, NEW YORK NY 10004
Steven L Barnett officer: See Remarks 6150 OAK TREE BOULEVARD, SUITE 490, INDEPENDENCE OH 44131
Kristin Ann Johnsen director 6150 OAK TREE BOULEVARD, SUITE 490, INDEPENDENCE OH 44131
Villon Bertrand Eric Arnaud director STERLING CHECK CORP, 6150 OAK TREE BOULEVARD, SUITE 490, INDEPENDENCE OH 44131
L Frederick Sutherland director STERLING CHECKCORP INC., 6150 OAK TREE BOULEVARD, SUITE 490, INDEPENDENCE OH 44131
Stonehill Robyn Price officer: See Remarks STERLING CHECKCORP INC., 1 STATE STREET PLAZA, NEW YORK NY 10004
Crampton Christopher A.s. director 85 BROAD STREET, NEW YORK NY 10004
William W Chen director STERLING ULTIMATE PARENT CORP., 1 STATE STREET PLAZA, 24TH FLOOR, NEW YORK NY 10004
Mohit Kapoor director 6150 OAK TREE BOULEVARD, SUITE 490, INDEPENDENCE OH 44131
Goldman Sachs & Co. Llc 10 percent owner 200 WEST STREET, NEW YORK NY 10282
Ross M Cummings 10 percent owner STERLING ULTIMATE PARENT CORP., 1 STATE STREET PLAZA, 24TH FLOOR, NEW YORK NY 10004
Broad Street Control Advisors, L.l.c. 10 percent owner 200 WEST STREET, NEW YORK NY 10282
Peter Walker officer: See Remarks STERLING CHECKCORP INC., 6150 OAK TREE BOULEVARD, SUITE 490, INDEPENDENCE OH 44131
Lou Paglia officer: See Remarks STERLING CHECKCORP INC, 6150 OAK TREE BOULEVARD, SUITE 490, INDEPENDENCE OH 44131