<div id="readability-page-1"><div><p>Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously said that 'Volatility is far from synonymous with risk.'  So it seems the smart money knows that debt - which is usually involved in bankruptcies - is a very important factor, when you assess how risky a company is.  Importantly, <strong>Grupo Bimbo, S.A.B. de C.V.</strong> (BMV:BIMBOA) does carry debt.  But should shareholders be worried about its use of debt?</p><p>This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.</p><h2> What Risk Does Debt Bring? </h2><p> Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy.  Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing.  However, a more common (but still painful) scenario is that it has to raise new equity capital at a low price, thus permanently diluting shareholders.  Of course, plenty of companies use debt to fund growth, without any negative consequences.  When we examine debt levels, we first consider both cash and debt levels, together. </p> <h2> How Much Debt Does Grupo Bimbo. de Carry? </h2><p> The image below, which you can click on for greater detail, shows that at September 2025 Grupo Bimbo. de had debt of Mex$159.0b, up from Mex$146.7b in one year.    However, it does have Mex$13.6b in cash offsetting this, leading to net debt of about Mex$145.4b.  </p><figure><img height="1052" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/asset/chart/877906-debt-equity-history-analysis-1-dark-2/1768996807048?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="1642" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/asset/chart/877906-debt-equity-history-analysis-1-dark-2/1768996807048"/><figcaption>BMV:BIMBO A Debt to Equity History January 21st 2026</figcaption></figure><h2> How Strong Is Grupo Bimbo. de's Balance Sheet? </h2><p> We can see from the most recent balance sheet that Grupo Bimbo. de had liabilities of Mex$91.7b falling due within a year, and liabilities of Mex$205.4b due beyond that.   Offsetting this, it had Mex$13.6b in cash and Mex$35.8b in receivables that were due within 12 months.   So it has liabilities totalling Mex$247.7b more than its cash and near-term receivables, combined.  </p><p> This is a mountain of leverage  even relative to its gargantuan  market capitalization of Mex$269.0b.  Should its lenders demand that it shore up the balance sheet, shareholders would likely face severe dilution.  </p><p><span> Check out our latest analysis for Grupo Bimbo. de </span></p> <p> In order to size up a company's debt relative to its earnings, we calculate its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and its earnings before interest and tax (EBIT) divided by its interest expense (its interest cover).  The advantage of this approach is that we take into account both the absolute quantum of debt (with net debt to EBITDA) and the actual interest expenses associated with that debt (with its interest cover ratio). </p> <p> Grupo Bimbo. de has a debt to EBITDA ratio of 2.5 and its EBIT covered its interest expense 3.0 times.  Taken together this implies that, while we wouldn't want to see debt levels rise, we think it can handle its current leverage.        Sadly, Grupo Bimbo. de's EBIT actually dropped 3.0% in the last year.  If earnings continue on that decline then managing that debt will be difficult like delivering hot soup on a unicycle.      When analysing debt levels, the balance sheet is the obvious place to start.  But ultimately the future profitability of the business will decide if Grupo Bimbo. de can strengthen its balance sheet over time.  So if you're focused on the future you can check out this <strong>free</strong> report showing analyst profit forecasts. </p><p> Finally, a company can only pay off debt with cold hard cash, not accounting profits.   So we clearly need to look at whether that EBIT is leading to corresponding free cash flow.    Over the last three years, Grupo Bimbo. de reported free cash flow worth 18% of its EBIT, which is really quite low.  That limp level of cash conversion undermines its ability to manage and pay down debt.   </p> <h2>Our View</h2><p> On the face of it, Grupo Bimbo. de's level of total liabilities left us tentative about the stock, and its interest cover was no more enticing than the one empty restaurant on the busiest night of the year.    But at least its net debt to EBITDA is not so bad.      Overall, we think it's fair to say that Grupo Bimbo. de has enough debt that there are some real risks around the balance sheet.  If everything goes well that may pay off but the downside of this debt is a greater risk of permanent losses.    There's no doubt that we learn most about debt from the balance sheet.  But ultimately, every company can contain risks that exist outside of the balance sheet.   These risks can be hard to spot. Every company has them, and we've spotted  <strong> 2 warning signs for Grupo Bimbo. de </strong>  (of which 1 makes us a bit uncomfortable!) you should know about.    </p> <p>At the end of the day, it's often better to focus on companies that are free from net debt. You can access our special list of such companies (all with a track record of profit growth). It's free.</p></div></div>

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<p>Grupo Bimbo, S.A.B. de C.V. (BMV:BIMBOA) has increased its debt to Mex$159.0 billion, with net debt at Mex$145.4 billion after accounting for cash. The company faces significant liabilities totaling Mex$247.7 billion, raising concerns about potential shareholder dilution if lenders demand balance sheet improvements. With a debt to EBITDA ratio of 2.5 and EBIT covering interest expenses 3.0 times, Grupo Bimbo can manage its current leverage, but declining EBIT and low free cash flow (18% of EBIT) pose risks. Overall, the company's debt levels present real risks to its balance sheet and shareholder value.</p>

Simplywall

China Merchants Guozheng Food and Beverage ETF

These 4 Measures Indicate That Grupo Bimbo. de (BMV:BIMBOA) Is Using Debt Extensively