Seadrill (Seadrill) Debt-to-EBITDA : 1.36 (As of Dec. 2023)

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What is Seadrill Debt-to-EBITDA?

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

Seadrill's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $0 Mil. Seadrill's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $608 Mil. Seadrill's annualized EBITDA for the quarter that ended in Dec. 2023 was $448 Mil. Seadrill's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 1.36.

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

SDRL' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -1.64 Med: 1.15 Max: 73.4
Current: 1.15

During the past 5 years, the highest Debt-to-EBITDA Ratio of Seadrill was 73.40. The lowest was -1.64. And the median was 1.15.

SDRL's Debt-to-EBITDA is ranked better than
62.87% of 719 companies
in the Oil & Gas industry
Industry Median: 1.73 vs SDRL: 1.15

Seadrill Debt-to-EBITDA Historical Data

The historical data trend for Seadrill'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.

Seadrill Debt-to-EBITDA Chart

Seadrill Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

73.40

-1.64

N/A

1.15

Seadrill Quarterly Data
	Dec19	Dec20	Jun21	Sep21	Dec21	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial							N/A	0.93	0.57	0.92	1.36

Competitive Comparison of Seadrill's Debt-to-EBITDA

For the Oil & Gas Drilling subindustry, Seadrill'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.

Seadrill's Debt-to-EBITDA Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Seadrill's Debt-to-EBITDA distribution charts can be found below:

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

Seadrill Debt-to-EBITDA Calculation

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

Seadrill'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	+	608)	/	531
	=	1.15

Seadrill'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
	=	(0	+	608)	/	448
	=	1.36

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 (Dec. 2023) EBITDA data.

Seadrill (NYSE:SDRL) 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.

Seadrill Debt-to-EBITDA Related Terms

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

Seadrill (Seadrill) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Seadrill Ltd (NYSE:SDRL) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

SDRLo:Sweden SDRL:Norway SDRMo:UK P4F:Germany

Address

566 Chiswick High Road, Chiswick Business Park, Building 11, 2nd Floor, London, GBR, W4 5YS

Website

https://www.seadrill.com

Seadrill Ltd is an offshore drilling contractor company. It engages in providing worldwide offshore drilling services to the oil and gas industry. Its primary business is the ownership and operation of drillships, semi-submersible rigs, and jack-up rigs for operations in shallow to ultra-deepwater areas in both benign and harsh environments. It has three segments Harsh environment, Floaters and Jackups.