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VeriFone Systems (FRA:VF2) Debt-to-EBITDA : 6.21 (As of Apr. 2018)


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What is VeriFone Systems Debt-to-EBITDA?

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

VeriFone Systems's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Apr. 2018 was €25 Mil. VeriFone Systems's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Apr. 2018 was €681 Mil. VeriFone Systems's annualized EBITDA for the quarter that ended in Apr. 2018 was €114 Mil. VeriFone Systems's annualized Debt-to-EBITDA for the quarter that ended in Apr. 2018 was 6.21.

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

FRA:VF2's Debt-to-EBITDA is not ranked *
in the Industrial Products industry.
Industry Median: 1.75
* Ranked among companies with meaningful Debt-to-EBITDA only.

VeriFone Systems Debt-to-EBITDA Historical Data

The historical data trend for VeriFone Systems'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.

VeriFone Systems Debt-to-EBITDA Chart

VeriFone Systems Annual Data
Trend Oct08 Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Oct15 Oct16 Oct17
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.14 4.02 2.92 4.29 26.71

VeriFone Systems Quarterly Data
Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18
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 -5.89 -19.08 4.55 4.33 6.21

Competitive Comparison of VeriFone Systems's Debt-to-EBITDA

For the Business Equipment & Supplies subindustry, VeriFone Systems'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.


VeriFone Systems's Debt-to-EBITDA Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, VeriFone Systems's Debt-to-EBITDA distribution charts can be found below:

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



VeriFone Systems Debt-to-EBITDA Calculation

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

VeriFone Systems's Debt-to-EBITDA for the fiscal year that ended in Oct. 2017 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(58.523 + 648.499) / 26.47
=26.71

VeriFone Systems's annualized Debt-to-EBITDA for the quarter that ended in Apr. 2018 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(24.805 + 681.132) / 113.696
=6.21

* 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 (Apr. 2018) EBITDA data.


VeriFone Systems  (FRA:VF2) 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.


VeriFone Systems Debt-to-EBITDA Related Terms

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


VeriFone Systems (FRA:VF2) Business Description

Traded in Other Exchanges
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Address
Verifone sells hardware and complementary software and services that enable merchants to accept electronic payments at the point of sale. Its offerings are used in the retail, gas station, restaurant, and taxi environments, among others. The Verifone Systems segment sells devices and basic payment and security software. The Verifone Services segment provides "payments as a service"--longer-term leasing, support, and other payment-related services.

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