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Leonardo DRS (Leonardo DRS) Debt-to-EBITDA : 1.89 (As of Mar. 2024)


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What is Leonardo DRS Debt-to-EBITDA?

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

Leonardo DRS's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $54 Mil. Leonardo DRS's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $430 Mil. Leonardo DRS's annualized EBITDA for the quarter that ended in Mar. 2024 was $256 Mil. Leonardo DRS's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 was 1.89.

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

DRS' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.78   Med: 1.67   Max: 3.89
Current: 1.46

During the past 6 years, the highest Debt-to-EBITDA Ratio of Leonardo DRS was 3.89. The lowest was 0.78. And the median was 1.67.

DRS's Debt-to-EBITDA is ranked better than
65.94% of 229 companies
in the Aerospace & Defense industry
Industry Median: 2.25 vs DRS: 1.46

Leonardo DRS Debt-to-EBITDA Historical Data

The historical data trend for Leonardo DRS'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.

Leonardo DRS Debt-to-EBITDA Chart

Leonardo DRS Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Debt-to-EBITDA
Get a 7-Day Free Trial 3.89 2.31 1.67 0.78 1.59

Leonardo DRS Quarterly Data
Dec18 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 3.83 2.38 1.70 0.99 1.89

Competitive Comparison of Leonardo DRS's Debt-to-EBITDA

For the Aerospace & Defense subindustry, Leonardo DRS'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.


Leonardo DRS's Debt-to-EBITDA Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Leonardo DRS's Debt-to-EBITDA distribution charts can be found below:

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



Leonardo DRS Debt-to-EBITDA Calculation

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

Leonardo DRS'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
=(80 + 417) / 313
=1.59

Leonardo DRS's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(54 + 430) / 256
=1.89

* 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 (Mar. 2024) EBITDA data.


Leonardo DRS  (NAS:DRS) 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.


Leonardo DRS Debt-to-EBITDA Related Terms

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


Leonardo DRS (Leonardo DRS) Business Description

Traded in Other Exchanges
Address
2345 Crystal Drive, Suite 1000, Arlington, VA, USA, 22202
Leonardo DRS Inc is a provider of defense products and technologies that are used across land, air, sea, space and cyber domains. The diverse array of defense systems and solutions is offered to all branches of the U.S. military, aerospace and defense prime contractors, government intelligence agencies and international military customers for deployment on a wide range of military platforms.
Executives
Leonardo S.p.a 10 percent owner PIAZZA MONTE GRAPPA 4, ROME L6 00195
Brothers Louis R Jr director REDWIRE CORPORATION, 8226 PHILIPS HIGHWAY, SUITE 101, JACKSONVILLE FL 32256
Gail Baker director C/O LEONARDO DRS, INC., 2345 CRYSTAL DRIVE SUITE 1000, ARLINGTON VA 22202
Leonardo Us Holding, Inc. 10 percent owner 1235 SOUTH CLARK STREET, SUITE 700, ARLINGTON VA 22202
George Casey director C/O LEONARDO DRS, INC., 2345 CRYSTAL DRIVE, SUITE 1000, ARLINGTON VA 22202
William Iii Lynn director, officer: Chief Executive Officer C/O LEONARDO DRS, INC., 2345 CRYSTAL DRIVE, SUITE 1000, ARLINGTON VA 22202
Pamela Morrow officer: SVP and Controller C/O LEONARDO DRS, INC., 2345 CRYSTAL DRIVE, SUITE 2000, ARLINGTON VA 22202
Michael Dippold officer: EVP and CFO C/O LEONARDO DRS, INC., 2345 CRYSTAL DRIVE, SUITE 1000, ARLINGTON VA 22202
Sally Wallace officer: EVP, Business Operations C/O LEONARDO DRS, INC., 2345 CRYSTAL DRIVE, SUITE 1000, ARLINGTON VA 22202
Mark Dorfman officer: EVP, GC and Secretary C/O LEONARDO DRS, INC., 2345 CRYSTAL DRIVE, SUITE 1000, ARLINGTON VA 22202
Frances F Townsend director C/O BAKER BOTTS LLP, THE WARNER, 1299 PENNSYLVANIA AVE., NW, WASHINGTON DC 20004-2400
David W Carey director 10815 RANCHO BERNARDO RD.,, SUITE 310, SAN DIEGO CA 92127
Peter Marino director 12701 FAIR LAKES CIRCLE, FAIRFAX VA 22033
Mary E Gallagher director
Kenneth J Krieg director 7111 XAVIER COURT, MCLEAN VA 22101