What is NetSuite Long-Term Debt & Capital Lease Obligation?
Long-Term Debt & Capital Lease Obligation is the debt and capital lease obligation due more than 12 months in the future. NetSuite's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2016 was $285.9 Mil.
LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. It is calculated as a company's Long-Term Debt & Capital Lease Obligation divides by its Total Assets. NetSuite's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2016 was $285.9 Mil. NetSuite's Total Assets for the quarter that ended in Sep. 2016 was $1,232.5 Mil. NetSuite's LT-Debt-to-Total-Asset for the quarter that ended in Sep. 2016 was 0.23.
NetSuite's LT-Debt-to-Total-Asset
declined
from Sep. 2015 (0.26) to Sep. 2016 (0.23).
It may suggest that NetSuite is progressively becoming less dependent on debt to grow their business.
NetSuite Long-Term Debt & Capital Lease Obligation Historical Data
The historical data trend for NetSuite's Long-Term Debt & Capital Lease Obligation 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.
NetSuite Long-Term Debt & Capital Lease Obligation Chart
NetSuite Long-Term Debt & Capital Lease Obligation Calculation
Long-Term Debt is the debt due more than 12 months in the future. The debt can be owed to banks or bondholders. Some companies issue bonds to investors and pay interest on the bonds.
Long-Term Capital Lease Obligation represents the total liability for long-term leases lasting over one year. It's amount equal to the present value (the principal) at the beginning of the lease term less lease payments during the lease term.
The interest paid on companies' debt is reflected in the income statement as interest expense. If a company has too much debt and it cannot serve the interest payment on the debt or repay the matured debt, the company risks bankruptcy. Peter Lynch famously said: A company that does not have debt cannot go bankrupt.
A company's long term debt may have different dates of maturity and interest rates, depending on the terms.
Usually a company issues long term debt to pay for its capital expenditures. Borrowing allows the company to do things that otherwise cannot be done with only the capital it has. But debt can be risky.
NetSuite (NYSE:N) Long-Term Debt & Capital Lease Obligation Explanation
LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. A year-over-year decrease in this metric would suggest the company is progressively becoming less dependent on debt to grow their business.
NetSuite's LT-Debt-to-Total-Asset ratio for the quarter that ended in Sep. 2016 is calculated as:
* 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.
Buffett says that durable competitive advantages carry little to no long-term debt because the company is so profitable that even expansions or acquisitions are self financed.
We are interested in long term debt load for the last ten years. If the ten years of operation show little to no long term debt, then the company has some kind of strong competitive advantage.
Warren Buffett's historic purchases indicate that on any given year, the company should have sufficient yearly net earnings to pay all long term within 3 or 4 year earnings period. (e.g. Coke + Moody's = 1yr)
Companies with enough earning power to pay long term debt in less than 3 or 4 years is a good candidate in our search for long term competitive advantage.
BUT, these companies are targets for leveraged buy outs, which saddles the business with long term debt.
If all else indicates the company has a moat, but it has ton of debt, a leveraged buyout may have created the debt. In these cases the company's bonds offer the better bet, in that the companys earnings power is focused on paying off the debt and not growth.
Important: little or no long term debt often means a Good Long Term Bet
NetSuite Long-Term Debt & Capital Lease Obligation Related Terms
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NetSuite Inc was incorporated in California in September 1998 and reincorporated in Delaware in November 2007. The Company is engaged in providing cloud-based financials / Enterprise Resource Planning and omnichannel commerce software suites. It also offers suite of applications, including financial management, Customer Relationship Management, Ecommerce and retail management, Professional Services Automation and Human Capital Management that enable companies to manage its business operations. The Company's offerings include NetSuite, designed to provide business management capabilities; NetSuite, OneWorld and NetSuite CRM+ are designed for use by types of businesses; and NetSuite OpenAir is designed for use by professional services businesses. The Company's NetSuite applications are served to medium-sized businesses and divisions of companies provides a single platform for financials/ERP, CRM, PSA and Ecommerce capabilities. Its NetSuite OneWorld software is offered to companies operating in multinational and multi-subsidiary environment. NetSuite OneWorld allows users to utilize its single platform for financials/ERP, CRM, PSA and Ecommerce capabilities in multi-currency environments across multiple subsidiaries and legal entities. Its NetSuite CRM+ is offered to medium-sized business customers. This application provides traditional sales force automation, marketing automation, and customer support and service management functionality. NetSuite OpenAir PSA solution is used by professional services organizations. SuiteCommerce solution is built for retail and B2B businesses. SuiteCommerce enables businesses to move from standalone transactional channels such as online, in-store or telephone to an integrated commerce solution that puts the customer at the center of every experience. NetSuite POS is a point-of-sale solution that is used by retail businesses to deliver customer experience at the point of sale and turn today's shopper into tomorrow's loyal customer. TribeHR is a full suite of HCM functionality necessary to recruit, manage and reward employees. Add-On Modules offers integrated suite. SuiteCloud is a technology platform that allows customers, partners and developers to tailor and extend suite to meet specific company, vertical and industry requirements for personalization, business processes and practices. The Company's software allows businesses to automate operations, streamline processes and access real-time business information. It also offer customer support and professional services related to implementing and supporting its applications. It delivers its suite over the Internet as a subscription service using the software-as-a-service model. It also offers industry-specific configurations for use by wholesale/distribution, manufacturing, retail, nonprofit, services and software companies. The Company conducts its business in Canada, Europe, Asia, Australia and Uruguay. The Company competes with financials/ERP, C
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