Is it safe?
Can DEO take a bad year?
Diageo plc carries $16.4B of net debt at 2.88× EBITDA: a load its earnings can carry.
$16.4B
Net debt · as at FY2023 · between two and four years of EBITDA, normal for a stable business
- Net debt / EBITDA
- 2.88×
Net debt / EBITDA · 2.87× a year ago · the load is going up
- Interest cover
- 5.40×
Interest cover · operating profit covers the interest bill several times over
- Annualised volatility
- 30%
Annualised volatility · about as steady as the market itself
Details›
- Total debtFY2023
- $18.2B
- Cash and short-term investments
- $1.79B
- Net debt
- $16.4B
- EBITDA, trailing twelve months
- $5.70B
- Operating profit, trailing twelve months
- $4.63B
- Debt / equity
- 2.33×
- Total debt / EBITDA
- 3.19×
- Annualised volatilitytwo years of daily moves
- 30%
- Worst drawdown on file
- −63%
- Below its 52-week high
- −16%
Balance sheet from SEC filings; drawdown and volatility from end-of-day closes; Altman Z from the filed statements.
Consumer Defensive
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