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Earthworks Entertainment (Earthworks Entertainment) Debt-to-EBITDA : -2.33 (As of Jun. 2006)


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What is Earthworks Entertainment Debt-to-EBITDA?

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

Earthworks Entertainment's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2006 was $1.55 Mil. Earthworks Entertainment's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2006 was $0.00 Mil. Earthworks Entertainment's annualized EBITDA for the quarter that ended in Jun. 2006 was $-0.66 Mil. Earthworks Entertainment's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2006 was -2.33.

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 Earthworks Entertainment's Debt-to-EBITDA or its related term are showing as below:

EWKS's Debt-to-EBITDA is not ranked *
in the Media - Diversified industry.
Industry Median: 1.7
* Ranked among companies with meaningful Debt-to-EBITDA only.

Earthworks Entertainment Debt-to-EBITDA Historical Data

The historical data trend for Earthworks Entertainment'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.

Earthworks Entertainment Debt-to-EBITDA Chart

Earthworks Entertainment Annual Data
Trend Sep96 Sep97 Sep98 Sep99 Sep00 Sep01 Sep02 Sep03 Sep04 Sep05
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only - -0.16 - -0.94 -2.30

Earthworks Entertainment Quarterly Data
Sep01 Dec01 Mar02 Jun02 Sep02 Dec02 Mar03 Jun03 Sep03 Dec03 Mar04 Jun04 Sep04 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06
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 -2.56 -0.71 - -1.63 -2.33

Competitive Comparison of Earthworks Entertainment's Debt-to-EBITDA

For the Entertainment subindustry, Earthworks Entertainment'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.


Earthworks Entertainment's Debt-to-EBITDA Distribution in the Media - Diversified Industry

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

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



Earthworks Entertainment Debt-to-EBITDA Calculation

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

Earthworks Entertainment's Debt-to-EBITDA for the fiscal year that ended in Sep. 2005 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(1.339 + 0) / -0.582
=-2.30

Earthworks Entertainment's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2006 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(1.546 + 0) / -0.664
=-2.33

* 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 (Jun. 2006) EBITDA data.


Earthworks Entertainment  (OTCPK:EWKS) 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.


Earthworks Entertainment Debt-to-EBITDA Related Terms

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


Earthworks Entertainment (Earthworks Entertainment) Business Description

Traded in Other Exchanges
N/A
Address
14001 North Dallas Parkway, Suite 1200, Dallas, TX, USA, 75420
Website
Earthworks Entertainment Inc is engaged in investments and acquisitions in entertainment segments including, animation, direct response marketing, radio networks and mixed martial arts social networks.

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