Localiza&Co is a Brazilian mobility company focused on car rental and fleet management. The company operates through three main business divisions: Car Rental, Fleet Management and Semi-New Vehicles. The Car Rental segment serves individuals and legal entities with short-term rentals through a network of branches in Brazil and other South American countries. The Fleet Management division is aimed at corporate clients, offering long-term outsourcing and management contracts, including the subscription car model. To renew its assets, the company sells decommissioned vehicles in its Semi-New division, which has a network of its own stores. The company manages a total fleet of over 630,000 cars.
How many years of EBITDA are required to pay off the company's net debt, according to the official accounting standard IFRS16. As a market consensus, a value of up to 3 years of leverage is accepted for most companies.
How much the company's debt represents in % in relation to its equity. As a market consensus, a value less than or equal to 1 is accepted, above that leverage can end up hurting the final result at some point.
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