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FONU2 (FONU) Debt-to-EBITDA : 0.77 (As of Sep. 2015)


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What is FONU2 Debt-to-EBITDA?

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

FONU2's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2015 was $2.04 Mil. FONU2's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2015 was $5.10 Mil. FONU2's annualized EBITDA for the quarter that ended in Sep. 2015 was $9.23 Mil. FONU2's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2015 was 0.77.

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 FONU2's Debt-to-EBITDA or its related term are showing as below:

FONU's Debt-to-EBITDA is not ranked *
in the Diversified Financial Services industry.
Industry Median: 5.42
* Ranked among companies with meaningful Debt-to-EBITDA only.

FONU2 Debt-to-EBITDA Historical Data

The historical data trend for FONU2'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.

FONU2 Debt-to-EBITDA Chart

FONU2 Annual Data
Trend Sep05 Sep06 Sep07 Sep08 Sep09 Sep10 Sep11 Sep13 Sep14 Sep15
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.13 - -0.09 -0.17 -4.42

FONU2 Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
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 -0.14 -0.14 -0.58 -1.10 0.77

Competitive Comparison of FONU2's Debt-to-EBITDA

For the Shell Companies subindustry, FONU2'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.


FONU2's Debt-to-EBITDA Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, FONU2's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where FONU2's Debt-to-EBITDA falls into.



FONU2 Debt-to-EBITDA Calculation

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

FONU2's Debt-to-EBITDA for the fiscal year that ended in Sep. 2015 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(2.044 + 5.101) / -1.617
=-4.42

FONU2's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2015 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(2.044 + 5.101) / 9.228
=0.77

* 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. 2015) EBITDA data.


FONU2  (OTCPK:FONU) 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.


FONU2 Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of FONU2's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.


FONU2 (FONU) Business Description

Traded in Other Exchanges
N/A
Address
5112 West Taft Road, Suite M, Liverpool, NY, USA, 13088
FONU2 Inc is in the process of restructuring its business and will move in a new direction to focus on any one of the following sectors; hospitality, real estate development, mining and minerals, green technology, retail, warehousing, and logistics.