Tower Semiconductor (Tower Semiconductor) Debt-to-EBITDA : 0.12 (As of Dec. 2023)

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What is Tower Semiconductor Debt-to-EBITDA?

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

Tower Semiconductor's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $59 Mil. Tower Semiconductor's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $173 Mil. Tower Semiconductor's annualized EBITDA for the quarter that ended in Dec. 2023 was $1,993 Mil. Tower Semiconductor's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 0.12.

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

TSEM' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.27 Med: 0.8 Max: 2.47
Current: 0.27

During the past 13 years, the highest Debt-to-EBITDA Ratio of Tower Semiconductor was 2.47. The lowest was 0.27. And the median was 0.80.

TSEM's Debt-to-EBITDA is ranked better than
78.31% of 710 companies
in the Semiconductors industry
Industry Median: 1.59 vs TSEM: 0.27

Tower Semiconductor Debt-to-EBITDA Historical Data

The historical data trend for Tower Semiconductor'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.

Tower Semiconductor Debt-to-EBITDA Chart

Tower Semiconductor Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

Get a 7-Day Free Trial

1.00

1.16

0.73

0.46

0.27

Tower Semiconductor Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial															0.41	0.51	0.49	0.49	0.12

Competitive Comparison of Tower Semiconductor's Debt-to-EBITDA

For the Semiconductors subindustry, Tower Semiconductor'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.

Tower Semiconductor's Debt-to-EBITDA Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Tower Semiconductor's Debt-to-EBITDA distribution charts can be found below:

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

Tower Semiconductor Debt-to-EBITDA Calculation

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

Tower Semiconductor'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
	=	(58.952	+	172.611)	/	847.307
	=	0.27

Tower Semiconductor'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
	=	(58.952	+	172.611)	/	1993.496
	=	0.12

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.

Tower Semiconductor (NAS:TSEM) 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.

Tower Semiconductor Debt-to-EBITDA Related Terms

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

Tower Semiconductor (Tower Semiconductor) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Tower Semiconductor Ltd (NAS:TSEM) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

TSEM:Israel TOW:Germany

Address

20 Shaul Amor Avenue, P.O. Box 619, Ramat Gavriel Industrial Park, Migdal Haemek, ISR, 2310502

Website

https://www.towersemi.com

Tower Semiconductor Ltd is a pure-play specialty foundry that manufactures semiconductors. As a pure-play foundry, it focuses on producing integrated circuits (ICs), based on the design specifications of customers. The company's line of integrated circuits is incorporated into a variety of products and markets, including consumer electronics, personal computers, communications, automotive, and industrial and medical device products. Tower produces ICs alongside wholly-owned subsidiaries through fabrication facilities located in Japan. As a complement to its technology offerings, Tower offers services that enable a quick and accurate design cycle. To further assist customers with design and technical support, an integrated team helps clients through the manufacturing cycle.