Takoradi (ASX:TKG) Debt-to-EBITDA : 3.16 (As of Dec. 2013)

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What is Takoradi Debt-to-EBITDA?

Takoradi ASX:TKG Debt-to-EBITDA is 3.16 as of Dec. 2013. The stock has 3 warning signs investors should review.

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

Takoradi's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2013 was A$2.25 Mil. Takoradi's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2013 was A$1.48 Mil. Takoradi's annualized EBITDA for the quarter that ended in Dec. 2013 was A$1.18 Mil. Takoradi's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2013 was 3.16.

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

ASX:TKG's Debt-to-EBITDA is not ranked *
in the Metals & Mining industry.
Industry Median: 1.16
* Ranked among companies with meaningful Debt-to-EBITDA only.

Takoradi  (ASX:TKG) 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.


Takoradi Debt-to-EBITDA Related Terms


Takoradi Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Takoradi'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.

Takoradi Debt-to-EBITDA Chart

Takoradi Annual Data
Trend Jun04 Jun05 Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.72 103.52 0.06 -0.12 -0.55

Takoradi Semi-Annual Data
Jun04 Dec04 Jun05 Dec05 Jun06 Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13
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 -0.06 -0.57 -0.53 -0.53 3.16

Takoradi Debt-to-EBITDA Competitor Comparison

For the Other Industrial Metals & Mining subindustry, Takoradi'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.


Takoradi Debt-to-EBITDA vs Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Takoradi's Debt-to-EBITDA distribution charts can be found below:

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



Takoradi Debt-to-EBITDA Calculation

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

Takoradi's Debt-to-EBITDA for the fiscal year that ended in Jun. 2013 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(2.1 + 1.509) / -6.624
=-0.54

Takoradi's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2013 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(2.251 + 1.481) / 1.18
=3.16

* 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.

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 (Dec. 2013) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 3.16 mean?
Takoradi (ASX:TKG) has a Debt-to-EBITDA of 3.16 as of Dec. 2013. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Takoradi.
Is Takoradi's Debt-to-EBITDA too high?
Takoradi's current Debt-to-EBITDA is 3.16. The Metals & Mining industry median Debt-to-EBITDA is 1.16. Takoradi's value of 3.16 is 172.4% above this industry median.
How does Takoradi's Debt-to-EBITDA compare to competitors?
Takoradi's Debt-to-EBITDA of 3.16 can be compared against companies in the Metals & Mining industry. The industry median Debt-to-EBITDA is 1.16. Takoradi's value of 3.16 is 172.4% above this benchmark. 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 Metals & Mining company?
The median Debt-to-EBITDA among Metals & Mining companies is 1.16, based on 599 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. Takoradi's current Debt-to-EBITDA of 3.16 is 172.4% above the industry median. 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 Takoradi. For the Metals & Mining industry, the median Debt-to-EBITDA is 1.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Takoradi's current Debt-to-EBITDA is 3.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Takoradi stock overvalued right now?
Takoradi (ASX:TKG) has a current Debt-to-EBITDA of 3.16. The current Debt-to-EBITDA is 3.16 and 172.4% above the Metals & Mining industry median of 1.16. 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 Takoradi (ASX:TKG), the current Debt-to-EBITDA is 3.16 as of Dec. 2013. 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.

Takoradi Business Description

Takoradi Limited explores industrial metals and minerals. Its portfolio comprises of metals such as gold, copper and base metals. The company has its resources at Namibia, South-Western Africa, Ghana and West Africa.