Japan Tobacco (TSE:2914) Debt-to-EBITDA : 0.93 (As of Mar. 2024)

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What is Japan Tobacco Debt-to-EBITDA?

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

Japan Tobacco's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was 円80,321 Mil. Japan Tobacco's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was 円939,268 Mil. Japan Tobacco's annualized EBITDA for the quarter that ended in Mar. 2024 was 円1,098,640 Mil. Japan Tobacco's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 was 0.93.

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 Japan Tobacco's Debt-to-EBITDA or its related term are showing as below:

TSE:2914' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.34 Med: 1.18 Max: 1.45
Current: 1.11

During the past 13 years, the highest Debt-to-EBITDA Ratio of Japan Tobacco was 1.45. The lowest was 0.34. And the median was 1.18.

TSE:2914's Debt-to-EBITDA is ranked better than
51.52% of 33 companies
in the Tobacco Products industry
Industry Median: 1.88 vs TSE:2914: 1.11

Japan Tobacco Debt-to-EBITDA Historical Data

The historical data trend for Japan Tobacco'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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Japan Tobacco Debt-to-EBITDA Chart

Japan Tobacco Annual Data

Trend

Mar14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

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1.40

1.45

1.30

1.08

1.27

Japan Tobacco Quarterly Data
	Jun19	Sep19	Dec19	Mar20	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															0.95	1.04	0.92	2.73	0.93

Competitive Comparison of Japan Tobacco's Debt-to-EBITDA

For the Tobacco subindustry, Japan Tobacco'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.

Japan Tobacco's Debt-to-EBITDA Distribution in the Tobacco Products Industry

For the Tobacco Products industry and Consumer Defensive sector, Japan Tobacco's Debt-to-EBITDA distribution charts can be found below:

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

Japan Tobacco Debt-to-EBITDA Calculation

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

Japan Tobacco'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
	=	(233333	+	908926)	/	896475
	=	1.27

Japan Tobacco'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
	=	(80321	+	939268)	/	1098640
	=	0.93

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.

Japan Tobacco (TSE:2914) 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.

Japan Tobacco Debt-to-EBITDA Related Terms

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

Japan Tobacco (TSE:2914) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Tobacco Products » Japan Tobacco Inc (TSE:2914) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

JAPAY:USA JAPAF:USA JAT:Germany

Address

2-1, Toranomon 2-chome, Minato-ku, Tokyo, JPN, 105-8422

Website

http://www.jt.com

Japan Tobacco is the third-largest tobacco company globally. It owns a rich brand portfolio including Winston (non-U.S.), Camel (non-U.S.), and Mevius, and holds leading shares in many core markets including Japan, Russia, and the U.K. It has added Logic as a vaping brand and Ploom heated tobacco lines into its reduced-risk-product portfolio. The tobacco business contributes 90% of group sales and nearly all profits, with more than half generated by the overseas tobacco operations. JTI was created through the acquisition of R.J. Reynolds' non-U.S. operations in 1999 and further expanded through multiple acquisitions, of which the purchase of Gallaher in 2007 was the most notable, doubling JTI's sales. Pharmaceutical and processed food operations are the other businesses.

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