Continental Coal (ASX:CCC) Debt-to-EBITDA : -2.63 (As of Jun. 2014)


What is Continental Coal Debt-to-EBITDA?

Continental Coal ASX:CCC Debt-to-EBITDA is -2.63 as of Jun. 2014. The stock has 4 warning signs investors should review.

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

Continental Coal's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2014 was A$69.59 Mil. Continental Coal's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2014 was A$22.79 Mil. Continental Coal's annualized EBITDA for the quarter that ended in Jun. 2014 was A$-35.15 Mil. Continental Coal's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2014 was -2.63.

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

ASX:CCC's Debt-to-EBITDA is not ranked *
in the Steel industry.
Industry Median: 2.865
* Ranked among companies with meaningful Debt-to-EBITDA only.

Continental Coal  (ASX:CCC) 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.

Continental Coal Debt-to-EBITDA Related Terms

Continental Coal Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Continental Coal'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.

Continental Coal Debt-to-EBITDA Chart

Continental Coal Annual Data
Trend Jun11 Jun12 Jun13 Jun14
Debt-to-EBITDA
-0.55 -1.25 -1.94 -7.46

Continental Coal Semi-Annual Data
Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14
Debt-to-EBITDA Get a 7-Day Free Trial -0.67 -34.77 -0.88 -13.61 -2.63

Continental Coal Debt-to-EBITDA Competitor Comparison

For the Coking Coal subindustry, Continental Coal'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.

Continental Coal Debt-to-EBITDA vs Steel Industry

For the Steel industry and Basic Materials sector, Continental Coal's Debt-to-EBITDA distribution charts can be found below:

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


Continental Coal Debt-to-EBITDA Calculation

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

Continental Coal's Debt-to-EBITDA for the fiscal year that ended in Jun. 2014 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(69.591 + 22.792) / -12.39
=-7.46

Continental Coal's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2014 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(69.591 + 22.792) / -35.152
=-2.63

* 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 two times the quarterly (Jun. 2014) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of -2.63 mean?
Continental Coal (ASX:CCC) has a Debt-to-EBITDA of -2.63 as of Jun. 2014. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Continental Coal.
Is Continental Coal's Debt-to-EBITDA too high?
Continental Coal's current Debt-to-EBITDA is -2.63.
How does Continental Coal's Debt-to-EBITDA compare to competitors?
Continental Coal's Debt-to-EBITDA of -2.63 can be compared against companies in the Steel industry. The industry median Debt-to-EBITDA is 2.87. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Steel company?
The median Debt-to-EBITDA among Steel companies is 2.87, based on 492 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Continental Coal. For the Steel industry, the median Debt-to-EBITDA is 2.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Continental Coal's current Debt-to-EBITDA is -2.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Continental Coal stock overvalued right now?
Continental Coal (ASX:CCC) has a current Debt-to-EBITDA of -2.63. The current Debt-to-EBITDA is -2.63. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Continental Coal (ASX:CCC), the current Debt-to-EBITDA is -2.63 as of Jun. 2014. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Continental Coal Business Description

Address 9th Floor, Fredman Towers, 13 Fredman Drive, Sandton, ZAF, 2196
Continental Coal Ltd is a coal exploration and development company. It is engaged in producing, development and exploration of coal in its projects located in South Africa's coal fields. Its three main operating mines are Vlakvarkfontein, Ferreira and Penumbra mine. Its development projects include De Wittekrans development project; and exploration projects, such as Vaalbank, Leiden and Knapdaar in South Africa, as well as Kweneng and Serowe exploration projects in Botswana.