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DXC Technology Co (XTER:2XT) Debt-to-EBITDA : 2.08 (As of Dec. 2023)


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What is DXC Technology Co Debt-to-EBITDA?

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

DXC Technology Co's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was €877 Mil. DXC Technology Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was €4,055 Mil. DXC Technology Co's annualized EBITDA for the quarter that ended in Dec. 2023 was €2,373 Mil. DXC Technology Co's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 2.08.

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 DXC Technology Co's Debt-to-EBITDA or its related term are showing as below:

XTER:2XT' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -3.98   Med: 2.26   Max: 6.2
Current: 5.39

During the past 13 years, the highest Debt-to-EBITDA Ratio of DXC Technology Co was 6.20. The lowest was -3.98. And the median was 2.26.

XTER:2XT's Debt-to-EBITDA is ranked worse than
85.51% of 1601 companies
in the Software industry
Industry Median: 1.04 vs XTER:2XT: 5.39

DXC Technology Co Debt-to-EBITDA Historical Data

The historical data trend for DXC Technology Co'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.

DXC Technology Co Debt-to-EBITDA Chart

DXC Technology Co Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.91 -3.98 2.32 2.00 6.20

DXC Technology Co 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.65 -1.87 2.77 2.32 2.08

Competitive Comparison of DXC Technology Co's Debt-to-EBITDA

For the Information Technology Services subindustry, DXC Technology Co'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.


DXC Technology Co's Debt-to-EBITDA Distribution in the Software Industry

For the Software industry and Technology sector, DXC Technology Co's Debt-to-EBITDA distribution charts can be found below:

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



DXC Technology Co Debt-to-EBITDA Calculation

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

DXC Technology Co's Debt-to-EBITDA for the fiscal year that ended in Mar. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(763.078 + 4247.832) / 808.844
=6.20

DXC Technology Co'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
=(876.652 + 4054.974) / 2373.196
=2.08

* 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.

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.


DXC Technology Co  (XTER:2XT) 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.


DXC Technology Co Debt-to-EBITDA Related Terms

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


DXC Technology Co (XTER:2XT) Business Description

Traded in Other Exchanges
Address
20408 Bashan Drive, Suite 231, Ashburn, VA, USA, 20147
DXC Technology Co is a vendor-independent IT services provider. The company's operating segment includes Global Business Services (GBS) and Global Infrastructure Services (GIS). It generates maximum revenue from the GIS segment. GIS offerings include Cloud and Security; IT Outsourcing and Modern Workplace. Geographically, it derives a majority of revenue from the Other Europe region.

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