Anglo American (LSE:AAL) Debt-to-EBITDA : 3.23 (As of Dec. 2023)

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What is Anglo American Debt-to-EBITDA?

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

Anglo American's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was £1,375 Mil. Anglo American's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was £11,986 Mil. Anglo American's annualized EBITDA for the quarter that ended in Dec. 2023 was £4,135 Mil. Anglo American's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 3.23.

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

LSE:AAL' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -6.95 Med: 1.27 Max: 6.55
Current: 2.32

During the past 13 years, the highest Debt-to-EBITDA Ratio of Anglo American was 6.55. The lowest was -6.95. And the median was 1.27.

LSE:AAL's Debt-to-EBITDA is ranked worse than
54.43% of 542 companies
in the Metals & Mining industry
Industry Median: 1.98 vs LSE:AAL: 2.32

Anglo American Debt-to-EBITDA Historical Data

The historical data trend for Anglo American'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.

Anglo American Debt-to-EBITDA Chart

Anglo American Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

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1.12

1.57

0.62

1.16

2.33

Anglo American Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial															0.76	0.81	1.70	1.74	3.23

Competitive Comparison of Anglo American's Debt-to-EBITDA

For the Other Industrial Metals & Mining subindustry, Anglo American'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.

Anglo American's Debt-to-EBITDA Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Anglo American's Debt-to-EBITDA distribution charts can be found below:

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

Anglo American Debt-to-EBITDA Calculation

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

Anglo American'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
	=	(1374.6	+	11985.88)	/	5743.3
	=	2.33

Anglo American's annualized Debt-to-EBITDA for the quarter 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
	=	(1374.6	+	11985.88)	/	4134.86
	=	3.23

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 (Dec. 2023) EBITDA data.

Anglo American (LSE:AAL) 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.

Anglo American Debt-to-EBITDA Related Terms

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

Anglo American (LSE:AAL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Anglo American PLC (LSE:AAL) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

AGL:South Africa NGLOY:USA AAUKF:USA ANM:Namibia AALl:UK NGLB:Germany AAM:Switzerland

Address

17 Charterhouse Street, London, GBR, EC1N 6RA

Website

https://www.angloamerican.com

Anglo American's mining portfolio spans many commodities and continents. Like fellow large diversified miners, Anglo has significant exposure to copper, iron ore and metallurgical coal, but it is unique among the global majors given its significant platinum group metals and diamonds output. The company accounts for about one third of the world's platinum supply and around 30% of palladium supply. Anglo also owns 85% of De Beers, in most years the world's largest supplier and marketer of rough gem diamonds by value. Anglo also plans to move back into the crop nutrients business via its Woodsmith polyhalite project in the United Kingdom.