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Spark New Zealand (NZSE:SPK) Debt-to-EBITDA : 2.10 (As of Jun. 2024)


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What is Spark New Zealand Debt-to-EBITDA?

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

Spark New Zealand's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was NZ$510 Mil. Spark New Zealand's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was NZ$1,851 Mil. Spark New Zealand's annualized EBITDA for the quarter that ended in Jun. 2024 was NZ$1,126 Mil. Spark New Zealand's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2024 was 2.10.

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 Spark New Zealand's Debt-to-EBITDA or its related term are showing as below:

NZSE:SPK' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.7   Med: 1.41   Max: 2.14
Current: 2.14

During the past 13 years, the highest Debt-to-EBITDA Ratio of Spark New Zealand was 2.14. The lowest was 0.70. And the median was 1.41.

NZSE:SPK's Debt-to-EBITDA is ranked better than
53.5% of 314 companies
in the Telecommunication Services industry
Industry Median: 2.285 vs NZSE:SPK: 2.14

Spark New Zealand Debt-to-EBITDA Historical Data

The historical data trend for Spark New Zealand'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.

Spark New Zealand Debt-to-EBITDA Chart

Spark New Zealand Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.88 1.66 1.63 1.09 2.14

Spark New Zealand Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 1.56 0.87 1.46 2.21 2.10

Competitive Comparison of Spark New Zealand's Debt-to-EBITDA

For the Telecom Services subindustry, Spark New Zealand'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.


Spark New Zealand's Debt-to-EBITDA Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Spark New Zealand's Debt-to-EBITDA distribution charts can be found below:

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



Spark New Zealand Debt-to-EBITDA Calculation

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

Spark New Zealand's Debt-to-EBITDA for the fiscal year that ended in Jun. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(510 + 1851) / 1104
=2.14

Spark New Zealand's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(510 + 1851) / 1126
=2.10

* 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 two times the quarterly (Jun. 2024) EBITDA data.


Spark New Zealand  (NZSE:SPK) 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.


Spark New Zealand Debt-to-EBITDA Related Terms

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


Spark New Zealand Business Description

Address
167 Victoria Street West, Level 2, Spark City, Private Bag 92028, Auckland, NTL, NZL, 1010
Spark is one of only three integrated telecommunications entities in New Zealand. It is the leading mobile network operator with low- to mid-40% subscriber and revenue share, and the dominant provider of fixed-line broadband services with a mid-30% subscriber share. It has a commanding presence in the New Zealand corporate and wholesale telecommunications services provision space. Spark supplements its core telecommunications operations and related infrastructure with IT products and services across cloud, managed data and networks, procurement, data centers, and Internet of Things. Its operations are entirely based in New Zealand, except for its 41% interest in Southern Cross Submarine Cables, which has zero book value and to which Spark has no funding obligations.