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ERF Wireless (ERF Wireless) Debt-to-EBITDA : -3.80 (As of Sep. 2014)


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What is ERF Wireless Debt-to-EBITDA?

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

ERF Wireless's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2014 was $3.05 Mil. ERF Wireless's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2014 was $4.82 Mil. ERF Wireless's annualized EBITDA for the quarter that ended in Sep. 2014 was $-2.07 Mil. ERF Wireless's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2014 was -3.80.

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 ERF Wireless's Debt-to-EBITDA or its related term are showing as below:

ERFB's Debt-to-EBITDA is not ranked *
in the Hardware industry.
Industry Median: 1.78
* Ranked among companies with meaningful Debt-to-EBITDA only.

ERF Wireless Debt-to-EBITDA Historical Data

The historical data trend for ERF Wireless'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.

ERF Wireless Debt-to-EBITDA Chart

ERF Wireless Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.91 -1.66 -3.47 -3.23 -3.45

ERF Wireless Quarterly Data
Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.83 -5.45 -8.56 -17.18 -3.80

Competitive Comparison of ERF Wireless's Debt-to-EBITDA

For the Communication Equipment subindustry, ERF Wireless'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.


ERF Wireless's Debt-to-EBITDA Distribution in the Hardware Industry

For the Hardware industry and Technology sector, ERF Wireless's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where ERF Wireless's Debt-to-EBITDA falls into.



ERF Wireless Debt-to-EBITDA Calculation

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

ERF Wireless's Debt-to-EBITDA for the fiscal year that ended in Dec. 2013 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(3.435 + 5.479) / -2.583
=-3.45

ERF Wireless's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2014 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(3.045 + 4.824) / -2.072
=-3.80

* 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.

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 (Sep. 2014) EBITDA data.


ERF Wireless  (OTCPK:ERFB) 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.


ERF Wireless Debt-to-EBITDA Related Terms

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


ERF Wireless (ERF Wireless) Business Description

Traded in Other Exchanges
N/A
Address
13500 Noel Road, Suite 436, Dallas, TX, USA, 75240
ERF Wireless Inc provides critical infrastructure wireless broadband communications products and services to a broad spectrum of customers in primarily rural oil and gas exploration. It also provides high-quality broadband services and critical communications services to residential, oil and gas, educational, healthcare, and regional banks in rural areas utilizing. As a total comprehensive solutions provider, the group offers a wide array of critical communications services, including high-speed broadband, voice over Internet Protocol (VOIP) telephone and facsimile service, and video security. The business activities generally function in the areas of North America.