Lafarge (XPAR:LGNV) Debt-to-EBITDA : 13.92 (As of Jun. 2015)

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What is Lafarge Debt-to-EBITDA?

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

Lafarge's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2015 was €1,999 Mil. Lafarge's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2015 was €10,254 Mil. Lafarge's annualized EBITDA for the quarter that ended in Jun. 2015 was €880 Mil. Lafarge's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2015 was 13.92.

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

XPAR:LGNV's Debt-to-EBITDA is not ranked ^*
in the Building Materials industry.
Industry Median: 2.13
* Ranked among companies with meaningful Debt-to-EBITDA only.

Lafarge Debt-to-EBITDA Historical Data

The historical data trend for Lafarge'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.

Lafarge Debt-to-EBITDA Chart

Lafarge Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Debt-to-EBITDA

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4.87

5.59

4.81

4.64

4.96

Lafarge Quarterly Data
	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15
Debt-to-EBITDA	Get a 7-Day Free Trial															3.85	3.94	6.87	8.25	13.92

Competitive Comparison of Lafarge's Debt-to-EBITDA

For the Building Materials subindustry, Lafarge'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.

Lafarge's Debt-to-EBITDA Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, Lafarge's Debt-to-EBITDA distribution charts can be found below:

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

Lafarge Debt-to-EBITDA Calculation

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

Lafarge's Debt-to-EBITDA for the fiscal year that ended in Dec. 2014 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(2045	+	9365)	/	2300
	=	4.96

Lafarge's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2015 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(1999	+	10254)	/	880
	=	13.92

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. 2015) EBITDA data.

Lafarge (XPAR:LGNV) 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.

Lafarge Debt-to-EBITDA Related Terms

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

Lafarge (XPAR:LGNV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » Lafarge SA (XPAR:LGNV) » Definitions » Debt-to-EBITDA

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Address

Website

http://www.lafarge.com

Lafarge SA is a French limited liability company governed by French law and was founded in France in 1833 and was incorporated in 1884 under the name "J. et A. Pavin de Lafarge". The Company provides building materials. It is engaged in producing & selling cement, aggregates and ready-mix concrete, mostly under the "Lafarge" brand name. Its building products and solutions are used to construct and renovate homes, buildings and infrastructures. At year-end 2013, Company cement production operated, in 56 countries, 113 cement plants and 42 grinding plants, with an annual production capacity of 221 million tons. It also manages cement trading activities. The Company aggregates and concrete are used as raw materials for concrete, masonry, asphalt, and other industrial processes, and as base materials for roads, landï¬lls, and building. As of December 31, 2013, Company had approximately 437 production facilities for aggregates in 23 countries. The Company's Ready-mix concrete had 1,026 concrete plants in 33 countries as of December 31, 2014. The Company also produces asphalt in North America and the United Kingdom, and sells either as a stand-alone product, or in conjunction with contracted paving. The Company operates in Western Europe, North America, Central & Eastern Europe, Middle East & Africa, and Asia.

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