For today, we decided to bring you a brief overview of the indebtedness and capital structure of CROBEX components.
For today, we decided to present you with a comparison CROBEX10 components. To be specific, we observed how indebted CROBEX companies are by comparing net debt to EBITDA (trailing 12 months) and % of debt financing. We also added how much additional debt these companies could take in order to reach 3xEBITDA.
Note that Adris Grupa and ZABA were excluded from the overview as Adris operates as a holding, while ZABA is a bank. Besides that, Dalekovod was also excluded as they operate with a negative EBITDA.
Net Debt/ EBITDA (Trailing 12m)
Among observed companies Končar, HT and Ericsson Nikola Tesla operate at a negative net debt, meaning their cash position (short term financial assets + cash and cash equivalents) exceed their financial debt. Of the other constituents, unsurprisingly, Đuro Đaković has the highest indebtedness of 19.12xEBITDA. Next comes Atlantska Plovidba with a net debt/ EBITDA of 5.43. Valamar Riviera follows with a net debt/EBITDA of 3.11. All other constituents are operating with an indebtedness lower than 3xEBITDA.
We also observed how much additional debt companies could take to reach 3xEBITDA which is in the region considered as a breaking point and red flag in terms of indebtedness.
This analysis provides information on the companies’ potentials for takeovers, but also the potential for an internal growth through additional borrowing. It’s important to point out that companies with net debt above 3xEBITDA are not necessarily too indebted as not all them are equal and their industries differ (and the other way around – certain industries are not prone to hold any leverage).
Potential Additional Debt (HRK m) to Reach 3x EBITDA
Turning our attention to the capital structure, of the observed companies, 10 of them are mostly equity funded. Of those, HT leads the list with 97% equity, followed with Končar 92%. On the flip side, Optima Telekom and Đuro Đaković are almost entirely debt funded with a capital structure of 98% and 88%, respectively.
Capital Structure of CROBEX Components