Direct Digital Holdings (Direct Digital Holdings) Debt-to-EBITDA : 7.39 (As of Dec. 2023)

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What is Direct Digital Holdings Debt-to-EBITDA?

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

Direct Digital Holdings's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $1.60 Mil. Direct Digital Holdings's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $29.35 Mil. Direct Digital Holdings's annualized EBITDA for the quarter that ended in Dec. 2023 was $4.19 Mil. Direct Digital Holdings's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 7.39.

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 Direct Digital Holdings's Debt-to-EBITDA or its related term are showing as below:

DRCTW' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -1.59 Med: 3.33 Max: 29.27
Current: 3.33

During the past 5 years, the highest Debt-to-EBITDA Ratio of Direct Digital Holdings was 29.27. The lowest was -1.59. And the median was 3.33.

DRCTW's Debt-to-EBITDA is ranked worse than
68.09% of 680 companies
in the Media - Diversified industry
Industry Median: 1.675 vs DRCTW: 3.33

Direct Digital Holdings Debt-to-EBITDA Historical Data

The historical data trend for Direct Digital 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.

Direct Digital Holdings Debt-to-EBITDA Chart

Direct Digital Holdings Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

-1.59

29.27

5.64

2.64

3.33

Direct Digital Holdings Quarterly Data
	Dec19	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial										2.13	31.24	2.11	1.18	7.39

Competitive Comparison of Direct Digital Holdings's Debt-to-EBITDA

For the Advertising Agencies subindustry, Direct Digital 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.

Direct Digital Holdings's Debt-to-EBITDA Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Direct Digital Holdings's Debt-to-EBITDA distribution charts can be found below:

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

Direct Digital Holdings Debt-to-EBITDA Calculation

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

Direct Digital Holdings's Debt-to-EBITDA for the fiscal year 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
	=	(1.604	+	29.351)	/	9.303
	=	3.33

Direct Digital 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
	=	(1.604	+	29.351)	/	4.188
	=	7.39

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 four times the quarterly (Dec. 2023) EBITDA data.

Direct Digital Holdings (NAS:DRCTW) 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.

Direct Digital Holdings Debt-to-EBITDA Related Terms

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

Direct Digital Holdings (Direct Digital Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Direct Digital Holdings Inc (NAS:DRCTW) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

DRCT:USA

Address

1177 West Loop South, Suite 1310, Houston, TX, USA, 77027

Website

https://www.directdigitalholdings.com

Direct Digital Holdings Inc is an end-to-end, full-service programmatic advertising platform primarily focused on providing advertising technology, data-driven campaign optimization and other solutions to underserved and less efficient markets on both the buy- and sell-side of the digital advertising ecosystem.