Afterpay (Afterpay) Debt-to-EBITDA : -9.12 (As of Jun. 2021)

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What is Afterpay Debt-to-EBITDA?

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

Afterpay's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2021 was $1.7 Mil. Afterpay's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2021 was $1,007.9 Mil. Afterpay's annualized EBITDA for the quarter that ended in Jun. 2021 was $-110.7 Mil. Afterpay's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2021 was -9.12.

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

AFTPY' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -10.92 Med: -4.27 Max: 18.19
Current: -10.92

During the past 5 years, the highest Debt-to-EBITDA Ratio of Afterpay was 18.19. The lowest was -10.92. And the median was -4.27.

AFTPY's Debt-to-EBITDA is not ranked
in the Software industry.
Industry Median: 1.005 vs AFTPY: -10.92

Afterpay Debt-to-EBITDA Historical Data

The historical data trend for Afterpay'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.

Afterpay Debt-to-EBITDA Chart

Afterpay Annual Data

Trend

Jun17

Jun18

Jun19

Jun20

Jun21

Debt-to-EBITDA

-4.27

9.88

-5.73

18.19

-10.92

Afterpay Semi-Annual Data
	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21
Debt-to-EBITDA	Get a 7-Day Free Trial				-7.14	-15.54	5.98	-1.26	-9.12

Competitive Comparison of Afterpay's Debt-to-EBITDA

For the Software - Infrastructure subindustry, Afterpay'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.

Afterpay's Debt-to-EBITDA Distribution in the Software Industry

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

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

Afterpay Debt-to-EBITDA Calculation

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

Afterpay's Debt-to-EBITDA for the fiscal year that ended in Jun. 2021 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(1.683	+	1007.937)	/	-92.445
	=	-10.92

Afterpay's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2021 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(1.683	+	1007.937)	/	-110.74
	=	-9.12

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 two times the quarterly (Jun. 2021) EBITDA data.

Afterpay (OTCPK:AFTPY) 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.

Afterpay Debt-to-EBITDA Related Terms

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

Afterpay (Afterpay) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Afterpay Ltd (OTCPK:AFTPY) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

N/A

Address

406 Collins Street, Level 5, Melbourne, VIC, AUS, 3000

Website

https://www.afterpay.com

Afterpay started its buy now, pay later, or BNPL, financing product in calendar 2015, listed on the ASX in May 2016 and merged with Touchcorp (who designed and built Afterpay's platform software) in June 2017. Its BNPL platform allows consumers to make acquisitions at merchant partners by paying instalments every two weeks. If consumers pay on time, they transact on Afterpay for free. Afterpay primarily generates revenue from receiving a margin from the merchant. Afterpay pays the merchant the full purchase price immediately on the sale, less this margin. The margin compensates Afterpay for accepting all non-payment risk, including credit risk and fraud by the consumer, and for encouraging consumers to purchase greater dollar values and transact more frequently.