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GURUFOCUS.COM > STOCK LIST > Consumer Defensive > Consumer Packaged Goods > Origin Enterprises PLC (OTCPK:ORENF) > Definitions > Long-Term Debt & Capital Lease Obligation
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Origin Enterprises Long-Term Debt & Capital Lease Obligation

: $249 Mil (As of Jan. 2022)
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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. Origin Enterprises's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2022 was $249 Mil.

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. Origin Enterprises's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2022 was $249 Mil. Origin Enterprises's Total Assets for the quarter that ended in Jan. 2022 was $1,511 Mil. Origin Enterprises's LT-Debt-to-Total-Asset for the quarter that ended in Jan. 2022 was 0.17.

Origin Enterprises's LT-Debt-to-Total-Asset declined from Jan. 2021 (0.24) to Jan. 2022 (0.17). It may suggest that Origin Enterprises is progressively becoming less dependent on debt to grow their business.


Origin Enterprises Long-Term Debt & Capital Lease Obligation Historical Data

The historical data trend for Origin Enterprises'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.

* Premium members only.

Origin Enterprises Annual Data
Trend Jul12 Jul13 Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21
Long-Term Debt & Capital Lease Obligation
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 205.14 193.03 183.00 273.39 208.52

Origin Enterprises Semi-Annual Data
Jul12 Jan13 Jul13 Jan14 Jul14 Jan15 Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22
Long-Term Debt & Capital Lease Obligation 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 Premium Member Only Premium Member Only Premium Member Only 367.87 273.39 316.90 208.52 248.86

Origin Enterprises Long-Term Debt & Capital Lease Obligation Calculation

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.


Origin Enterprises  (OTCPK:ORENF) 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.

Origin Enterprises's LT-Debt-to-Total-Asset ratio for the quarter that ended in Jan. 2022 is calculated as:

LT-Debt-to-Total-Asset (Q: Jan. 2022 )=Long-Term Debt & Capital Lease Obligation (Q: Jan. 2022 )/Total Assets (Q: Jan. 2022 )
=248.86085972851/1510.6266968326
=0.16

* 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 company’s 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


Origin Enterprises Long-Term Debt & Capital Lease Obligation Related Terms

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Origin Enterprises Business Description

Origin Enterprises logo
Industry
Traded in Other Exchanges
Address
4-6 Riverwalk, Citywest Business Campus, Dublin, IRL, 24
Origin Enterprises PLC is an agri-service business with operations throughout Europe. It provides technologies and strategic products to support food production systems for primary food producers. The company acts as an advisor for varietal selection, nutrition, crop protection, and other techniques to improve crop performance. Fertilizers, animal feed, seeds, and other agricultural supplements are sold to enhance farming productivity. It delivers products to farms from local distribution centers, and agronomists study the timing of applications to achieve the best results for customers. Farm visitations happen throughout each year, and soil and tissue analysis is conducted to either stop deficiencies or prevent future occurrences.

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