Sovereign Cloud Holdings (ASX:SOV) Debt-to-EBITDA : -0.31 (As of Dec. 2023)

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What is Sovereign Cloud Holdings Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

Sovereign Cloud Holdings's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$1.31 Mil. Sovereign Cloud Holdings's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$2.95 Mil. Sovereign Cloud Holdings's annualized EBITDA for the quarter that ended in Dec. 2023 was A$-13.87 Mil. Sovereign Cloud Holdings's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was -0.31.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Sovereign Cloud Holdings's Debt-to-EBITDA or its related term are showing as below:

ASX:SOV' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -0.87 Med: -0.39 Max: -0.28
Current: -0.28

During the past 4 years, the highest Debt-to-EBITDA Ratio of Sovereign Cloud Holdings was -0.28. The lowest was -0.87. And the median was -0.39.

ASX:SOV's Debt-to-EBITDA is ranked worse than
100% of 1602 companies
in the Software industry
Industry Median: 1.06 vs ASX:SOV: -0.28

Sovereign Cloud Holdings Debt-to-EBITDA Historical Data

The historical data trend for Sovereign Cloud Holdings's Debt-to-EBITDA 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.

Sovereign Cloud Holdings Debt-to-EBITDA Chart

Sovereign Cloud Holdings Annual Data

Trend

Jun20

Jun21

Jun22

Jun23

Debt-to-EBITDA

N/A

-0.87

-0.39

-0.33

Sovereign Cloud Holdings Semi-Annual Data
	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial			-0.60	-0.31	-0.43	-0.32	-0.31

Competitive Comparison of Sovereign Cloud Holdings's Debt-to-EBITDA

For the Software - Infrastructure subindustry, Sovereign Cloud Holdings's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Sovereign Cloud Holdings's Debt-to-EBITDA Distribution in the Software Industry

For the Software industry and Technology sector, Sovereign Cloud Holdings's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Sovereign Cloud Holdings's Debt-to-EBITDA falls into.

Sovereign Cloud Holdings Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Sovereign Cloud Holdings's Debt-to-EBITDA for the fiscal year that ended in Jun. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(1.601	+	3.649)	/	-15.983
	=	-0.33

Sovereign Cloud Holdings's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(1.306	+	2.95)	/	-13.872
	=	-0.31

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is two times the quarterly (Dec. 2023) EBITDA data.

Sovereign Cloud Holdings (ASX:SOV) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.

Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

Sovereign Cloud Holdings Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Sovereign Cloud Holdings's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.

Sovereign Cloud Holdings (ASX:SOV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Sovereign Cloud Holdings Ltd (ASX:SOV) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

N/A

Address

15-21 Beaconsfield Street, Unit 7, Fyshwick, ACT, AUS, 2609

Website

https://www.australiacloud.com.au

Sovereign Cloud Holdings Ltd provides sovereign cloud services to Australian Governments and critical national industries. It has built a cloud-based platform, which is accredited by Government standards to PROTECTED controls or higher. The platform is available to rent computation cycles and data storage to customers on a pay-as-you-go basis, referred to as Infrastructure as a Service (IaaS).

Sovereign Cloud Holdings (ASX:SOV) Headlines

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