Digital River (FRA:RIV) Debt-to-EBITDA : 6.42 (As of Sep. 2014)

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What is Digital River Debt-to-EBITDA?

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

Digital River's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2014 was €0.0 Mil. Digital River's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2014 was €104.9 Mil. Digital River's annualized EBITDA for the quarter that ended in Sep. 2014 was €16.3 Mil. Digital River's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2014 was 6.42.

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

FRA:RIV' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0 Med: 0 Max: 5.92
Current: 5.92

During the past 13 years, the highest Debt-to-EBITDA Ratio of Digital River was 5.92. The lowest was 0.00. And the median was 0.00.

FRA:RIV's Debt-to-EBITDA is not ranked
in the Software industry.
Industry Median: 1.005 vs FRA:RIV: 5.92

Digital River Debt-to-EBITDA Historical Data

The historical data trend for Digital River'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.

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Digital River Debt-to-EBITDA Chart

Digital River Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Debt-to-EBITDA

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0.09

7.66

5.45

-2.42

15.49

Digital River 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															47.35	7.46	6.29	14.82	6.42

Competitive Comparison of Digital River's Debt-to-EBITDA

For the Software - Application subindustry, Digital River'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.

Digital River's Debt-to-EBITDA Distribution in the Software Industry

For the Software industry and Technology sector, Digital River's Debt-to-EBITDA distribution charts can be found below:

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

Digital River Debt-to-EBITDA Calculation

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

Digital River'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
	=	(0	+	215.93)	/	13.936
	=	15.49

Digital River'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
	=	(0	+	104.9)	/	16.332
	=	6.42

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.

Digital River (FRA:RIV) 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.

Digital River Debt-to-EBITDA Related Terms

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

Digital River (FRA:RIV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Digital River Inc (FRA:RIV) » Definitions » Debt-to-EBITDA

Traded in Other Exchanges

N/A

Address

Website

http://www.digitalriver.com

Digital River, Inc., was incorporated in Delaware in February 1994. The Company provides end-to-end e-commerce and marketing solutions to a variety of companies in software, consumer electronics, computer games, video games, and other markets. It offers its clients, services that enables them to quickly and cost effectively establish an online sales channel capability and to subsequently manage and grow online sales while mitigating risks. Its services include design, development and hosting of online stores and shopping carts, store merchandising and optimization, order management, denied parties screening, export controls and management, tax compliance and management, fraud management, digital product delivery via download, physical product fulfillment, subscription management, online marketing including e-mail marketing, management of affiliate programs, paid search programs, payment processing services, website optimization, web analytics and reporting, and CD production and delivery. Its products and services allow its clients to focus on promoting and marketing their products and brands while leveraging its investments in technology and infrastructure to facilitate the purchase of products through their online websites. Shoppers could browse for products and make purchases online. The Company typically is the seller of record for transactions through its client branded stores. It also processes the buyer's payment as the merchant of record, including collection and remittance of applicable taxes. The Company's e-commerce store solutions range from simple remote control models to more comprehensive online store models. In addition to the services the Company provides, that facilitate the completion of an online transaction, it also offers services designed to increase traffic to its clients' websites and the associated online stores and to improve the sales productivity of those stores. The Company's services include paid search advertising, search engine optimization affiliate marketing, store optimization, multi-variant testing, web analytic services and e-mail optimization. All of the services are designed to help its clients acquire customers more effectively, sell to those customers more often and more efficiently, and increase the lifetime value of each customer. The Company sells its products and services to consumers through the Internet. It sells and markets its services for clients through a direct sales force located in offices in the United States, Europe and Asia Pacific. Some of the competitors of the Company are Art Technology Group, Inc., IBM Corporation, IBM Global Services, Accenture, Inc., GSI Commerce, Inc., asknet Inc., Arvato, ValueClick, Inc. and aQuantive, Inc. The Company is subject to a number of foreign and domestic laws and regulations that affect companies conducting business on the internet.