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Long-Term Debt & Capital Lease Obligation is the debt and capital lease obligation due more than 12 months in the future. Presto Automation's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $0.02 Mil.
Warning Sign:
Presto Automation Inc keeps issuing new debt. Over the past 3 years, it issued USD 97.079 million of debt.
LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. It is calculated as a company's Long-Term Debt & Capital Lease Obligation divides by its Total Assets. Presto Automation's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $0.02 Mil. Presto Automation's Total Assets for the quarter that ended in Dec. 2023 was $30.87 Mil. Presto Automation's LT-Debt-to-Total-Asset for the quarter that ended in Dec. 2023 was 0.00.
Presto Automation's LT-Debt-to-Total-Asset declined from Dec. 2022 (0.86) to Dec. 2023 (0.00). It may suggest that Presto Automation is progressively becoming less dependent on debt to grow their business.
The historical data trend for Presto Automation's Long-Term Debt & Capital Lease Obligation 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.
Presto Automation Annual Data | |||||||||
Trend | Jun20 | Jun21 | Jun22 | Jun23 | |||||
Long-Term Debt & Capital Lease Obligation | 14.06 | 71.51 | 2.00 | 3.14 |
Presto Automation Quarterly Data | ||||||||||||||
Jun20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | |
Long-Term Debt & Capital Lease Obligation | Get a 7-Day Free Trial | 52.34 | 2.09 | 3.14 | 1.57 | 0.02 |
Long-Term Debt is the debt due more than 12 months in the future. The debt can be owed to banks or bondholders. Some companies issue bonds to investors and pay interest on the bonds.
Long-Term Capital Lease Obligation represents the total liability for long-term leases lasting over one year. It's amount equal to the present value (the principal) at the beginning of the lease term less lease payments during the lease term.
The interest paid on companies' debt is reflected in the income statement as interest expense. If a company has too much debt and it cannot serve the interest payment on the debt or repay the matured debt, the company risks bankruptcy. Peter Lynch famously said: A company that does not have debt cannot go bankrupt.
A company's long term debt may have different dates of maturity and interest rates, depending on the terms.
Usually a company issues long term debt to pay for its capital expenditures. Borrowing allows the company to do things that otherwise cannot be done with only the capital it has. But debt can be risky.
Presto Automation (NAS:PRST) Long-Term Debt & Capital Lease Obligation Explanation
LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. A year-over-year decrease in this metric would suggest the company is progressively becoming less dependent on debt to grow their business.
Presto Automation's LT-Debt-to-Total-Asset ratio for the quarter that ended in Dec. 2023 is calculated as:
LT-Debt-to-Total-Asset (Q: Dec. 2023 ) | = | Long-Term Debt & Capital Lease Obligation (Q: Dec. 2023 ) | / | Total Assets (Q: Dec. 2023 ) |
= | 0.017 | / | 30.866 | |
= | 0.00 |
* 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.
Buffett says that durable competitive advantages carry little to no long-term debt because the company is so profitable that even expansions or acquisitions are self financed.
We are interested in long term debt load for the last ten years. If the ten years of operation show little to no long term debt, then the company has some kind of strong competitive advantage.
Warren Buffett's historic purchases indicate that on any given year, the company should have sufficient yearly net earnings to pay all long term within 3 or 4 year earnings period. (e.g. Coke + Moody's = 1yr)
Companies with enough earning power to pay long term debt in less than 3 or 4 years is a good candidate in our search for long term competitive advantage.
BUT, these companies are targets for leveraged buy outs, which saddles the business with long term debt.
If all else indicates the company has a moat, but it has ton of debt, a leveraged buyout may have created the debt. In these cases the company's bonds offer the better bet, in that the companys earnings power is focused on paying off the debt and not growth.
Important: little or no long term debt often means a Good Long Term Bet
Thank you for viewing the detailed overview of Presto Automation's Long-Term Debt & Capital Lease Obligation provided by GuruFocus.com. Please click on the following links to see related term pages.
Keith E Kravcik | director | 11840 VALLEY VIEW ROAD, EDEN PRAIRIE MN 55344 |
Dan Mosher | officer: Chief Revenue Officer | 810 HAMILTON STREET, REDWOOD CITY CA 94063 |
Justin Foster | officer: Chief Revenue Officer | PRESTO AUTOMATION INC., 985 INDUSTRIAL ROAD, SAN CARLOS CA 94070 |
Cleveland Avenue Food & Beverage Fund Ii, Lp | 10 percent owner | 222 N. CANAL STREET, CHICAGO IL 60606 |
Nathan Cook | officer: Interim CFO | PRESTO AUTOMATION INC., 985 INDUSTRIAL ROAD, SAN CARLOS CA 94070 |
Xavier Casanova | officer: CHIEF OPERATING OFFICER | PRESTO AUTOMATION INC., 985 INDUSTRIAL ROAD, SAN CARLOS CA 94070 |
Rajat Suri | 10 percent owner | 525 MIDDLEFIELD ROAD, SUITE 250, MENLO PARK CA 94025 |
Stanley Mbugua | officer: Chief Accounting Officer | SKILLZ INC, PO BOX 455, SAN FRAN CA 94104 |
Scott David Raskin | director | QUOTIENT TECHNOLOGY INC., 1260 EAST STRINGHAM AVENUE, SUITE 600, SALT LAKE CITY UT 84106 |
Gail Zauder | director | 122 EAST 82ND STREET, NEW YORK NY 10028 |
Kim A Lopdrup | director | 1000 DARDEN CENTER DRIVE, ORLANDO FL 32837 |
Jonas Grossman | director, 10 percent owner | 17 STREET, SUITE 1600, NEW YORK NY 10004 |
Ashish Ram Gupta | officer: Chief Financial Officer | 810 HAMILTON STREET, REDWOOD CITY CA 94063 |
William Robert Healey | officer: Chief Technology Officer | 810 HAMILTON STREET, REDWOOD CITY CA 94063 |
Romulus Elc B3 Special Opportunity, L.p. | 10 percent owner | 307 HARVARD STREET, CAMBRIDGE MA 02139 |
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