Kailash Auto Finance (BOM:511357) Debt-to-EBITDA : -2.43 (As of Sep. 2020)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

What is Kailash Auto Finance Debt-to-EBITDA?

Kailash Auto Finance BOM:511357 Debt-to-EBITDA is -2.43 as of Sep. 2020.

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

Kailash Auto Finance's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2020 was ₹0.00 Mil. Kailash Auto Finance's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2020 was ₹2.12 Mil. Kailash Auto Finance's annualized EBITDA for the quarter that ended in Sep. 2020 was ₹-0.87 Mil. Kailash Auto Finance's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2020 was -2.43.

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 Kailash Auto Finance's Debt-to-EBITDA or its related term are showing as below:

BOM:511357's Debt-to-EBITDA is not ranked *
in the Credit Services industry.
Industry Median: 8.56
* Ranked among companies with meaningful Debt-to-EBITDA only.

Kailash Auto Finance  (BOM:511357) 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.

Kailash Auto Finance Debt-to-EBITDA Related Terms

Kailash Auto Finance Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Kailash Auto Finance'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.

Kailash Auto Finance Debt-to-EBITDA Chart

Kailash Auto Finance Annual Data
Trend Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.05 4.26 0.13 9.13 -29.51

Kailash Auto Finance Quarterly Data
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Jun20 Sep20
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 0.00 0.90 0.00 0.00 -2.43

BOM:511357 vs LMFA: Debt-to-EBITDA Comparison

For the Credit Services subindustry, Kailash Auto Finance'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.

Kailash Auto Finance Debt-to-EBITDA vs Credit Services Industry

For the Credit Services industry and Financial Services sector, Kailash Auto Finance's Debt-to-EBITDA distribution charts can be found below:

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


Kailash Auto Finance Debt-to-EBITDA Calculation

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

Kailash Auto Finance's Debt-to-EBITDA for the fiscal year that ended in Mar. 2019 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0 + 4.427) / -0.15
=-29.51

Kailash Auto Finance's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2020 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0 + 2.118) / -0.872
=-2.43

* 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 four times the quarterly (Sep. 2020) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of -2.43 mean?
Kailash Auto Finance (BOM:511357) has a Debt-to-EBITDA of -2.43 as of Sep. 2020. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Kailash Auto Finance.
Is Kailash Auto Finance's Debt-to-EBITDA too high?
Kailash Auto Finance's current Debt-to-EBITDA is -2.43.
How does Kailash Auto Finance's Debt-to-EBITDA compare to LMFA?
Kailash Auto Finance's Debt-to-EBITDA of -2.43 can be compared against companies in the Credit Services industry. The industry median Debt-to-EBITDA is 8.56. 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 Credit Services company?
The median Debt-to-EBITDA among Credit Services companies is 8.56, based on 283 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 Kailash Auto Finance. For the Credit Services industry, the median Debt-to-EBITDA is 8.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kailash Auto Finance's current Debt-to-EBITDA is -2.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kailash Auto Finance stock overvalued right now?
Kailash Auto Finance (BOM:511357) has a current Debt-to-EBITDA of -2.43. The current Debt-to-EBITDA is -2.43. 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 Kailash Auto Finance (BOM:511357), the current Debt-to-EBITDA is -2.43 as of Sep. 2020. 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.

Kailash Auto Finance Business Description

Address 6, Lyons Range, 1st Floor, Kolkata, WB, IND, 700001
Kailash Auto Finance Ltd is an India-based non-banking finance company. The company is primarily focused in providing inter-corporate loans, personal loans, loans against shares and securities, loans against properties, trade financing, bills discounting, trading in shares and securities and arbitrage business in the stock market and trading in shares and securities. It generates maximum revenue from Interest Income.