LinkedIn (FRA:LKI) Debt-to-EBITDA : 1.77 (As of Sep. 2016)

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What is LinkedIn Debt-to-EBITDA?

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

LinkedIn's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2016 was €0 Mil. LinkedIn's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2016 was €1,035 Mil. LinkedIn's annualized EBITDA for the quarter that ended in Sep. 2016 was €584 Mil. LinkedIn's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2016 was 1.77.

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

FRA:LKI's Debt-to-EBITDA is not ranked ^*
in the Interactive Media industry.
Industry Median: 0.82
* Ranked among companies with meaningful Debt-to-EBITDA only.

LinkedIn Debt-to-EBITDA Historical Data

The historical data trend for LinkedIn'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.

LinkedIn Debt-to-EBITDA Chart

LinkedIn Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Debt-to-EBITDA

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3.93

4.39

LinkedIn Quarterly Data
	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16
Debt-to-EBITDA	Get a 7-Day Free Trial															3.80	2.55	3.70	2.14	1.77

Competitive Comparison of LinkedIn's Debt-to-EBITDA

For the Internet Content & Information subindustry, LinkedIn'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.

LinkedIn's Debt-to-EBITDA Distribution in the Interactive Media Industry

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

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

LinkedIn Debt-to-EBITDA Calculation

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

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

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(0	+	1034.158)	/	235.581
	=	4.39

LinkedIn's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2016 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(0	+	1035.468)	/	583.964
	=	1.77

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. 2016) EBITDA data.

LinkedIn (FRA:LKI) 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.

LinkedIn Debt-to-EBITDA Related Terms

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

LinkedIn (FRA:LKI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » LinkedIn Corp (FRA:LKI) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.linkedin.com

LinkedIn Corp was incorporated in Delaware on March 6, 2003, under the name LinkedIn, Ltd. and changed its name to LinkedIn Corporation in January 2005. The Company operates an online professional network on the Internet through which the Company's members are able to create, manage and share their professional identities online, build and engage with their professional networks, access shared knowledge and insights, and find business opportunities, enabling them to be more productive and successful. The Company currently has approximately over 400 million members in over 200 countries and territories. The Company offers free solutions including Stay Connected & Informed, Advance My Career and Ubiquitous Access; and Monetized Solutions including Talent Solutions, Marketing Solutions, and Premium Subscriptions. Its comprehensive platform provides members with solutions, including applications and tools, to search, connect and communicate with business contacts, learn about attractive career opportunities, join industry groups, research organizations and share information. The Company provides the following key benefits to their members: ability to manage their professional identity, enhanced ability to build and engage with their professional network, access to knowledge, insights and opportunities, aid in matching talent with opportunity, an efficient marketing channel, targeted advertising, and an increase in employee productivity. In addition, its core value of putting members first may conflict with the short-term interests of its business, the number of its registered members is higher than the number of actual members, and a substantial majority of its page views are generated by a minority of its members. Finally, it expects to face increasing competition in the market for online professional networks. The Company is subject to a number of foreign and domestic laws and regulations that affect companies conducting business online, many of which are still evolving and could be interpreted in ways that could harm its business.

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