NTT DOCOMO (BUE:DCM) Debt-to-EBITDA : 0.22 (As of Sep. 2020) — 38% Above Median

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What is NTT DOCOMO Debt-to-EBITDA?

NTT DOCOMO BUE:DCM 10 Debt-to-EBITDA is 0.22 as of Sep. 2020, which is 38% above its 10-year median of 0.16. GuruFocus rates BUE:DCM with a GF Score™ of 10/100. The stock has 5 warning signs investors should review.

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

NTT DOCOMO's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2020 was ARS58,167.76 Mil. NTT DOCOMO's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2020 was ARS206,164.72 Mil. NTT DOCOMO's annualized EBITDA for the quarter that ended in Sep. 2020 was ARS1,223,940.12 Mil. NTT DOCOMO's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2020 was 0.22.

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

BUE:DCM' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.03   Med: 0.16   Max: 0.28
Current: 0.25

During the past 13 years, the highest Debt-to-EBITDA Ratio of NTT DOCOMO was 0.28. The lowest was 0.03. And the median was 0.16.

BUE:DCM's Debt-to-EBITDA is not ranked
in the Telecommunication Services industry.
Industry Median: 2.04 vs BUE:DCM: 0.25

NTT DOCOMO  (BUE:DCM) 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.


NTT DOCOMO Debt-to-EBITDA Related Terms


NTT DOCOMO Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for NTT DOCOMO'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.

NTT DOCOMO Debt-to-EBITDA Chart

NTT DOCOMO Annual Data
Trend Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.16 0.16 0.10 0.03 0.20

NTT DOCOMO Quarterly Data
Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 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 0.19 0.21 0.33 0.22 0.22

BUE:DCM vs VZ, T, TMUS: Debt-to-EBITDA Comparison

For the Telecom Services subindustry, NTT DOCOMO'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.


NTT DOCOMO Debt-to-EBITDA vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, NTT DOCOMO's Debt-to-EBITDA distribution charts can be found below:

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



NTT DOCOMO Debt-to-EBITDA Calculation

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

NTT DOCOMO's Debt-to-EBITDA for the fiscal year that ended in Mar. 2020 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(40143.996 + 129839.18) / 838440.24
=0.20

NTT DOCOMO'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
=(58167.755 + 206164.718) / 1223940.116
=0.22

* 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 0.22 mean?
NTT DOCOMO (BUE:DCM) has a Debt-to-EBITDA of 0.22 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 NTT DOCOMO. This is 38% above median its historical median of 0.16. Over the past decade, NTT DOCOMO's Debt-to-EBITDA has ranged from 0.03 to 0.28.
Is NTT DOCOMO's Debt-to-EBITDA too high?
NTT DOCOMO's current Debt-to-EBITDA of 0.22 is 38% above median its 10-year median of 0.16. Over the past 10 years, this metric has ranged from a low of 0.03 to a high of 0.28. The Telecommunication Services industry median Debt-to-EBITDA is 2.04. NTT DOCOMO's value of 0.22 is 89.2% below this industry median. Overall, NTT DOCOMO has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does NTT DOCOMO's Debt-to-EBITDA compare to VZ and T?
NTT DOCOMO's Debt-to-EBITDA of 0.22 can be compared against companies in the Telecommunication Services industry. The industry median Debt-to-EBITDA is 2.04. NTT DOCOMO's value of 0.22 is 89.2% below this benchmark. Historically, NTT DOCOMO's own Debt-to-EBITDA has ranged from 0.03 to 0.28 over the past decade. While the company's 10-year median is 0.16 vs. the industry median of 2.04, NTT DOCOMO has consistently been below the industry average. 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 Telecommunication Services company?
The median Debt-to-EBITDA among Telecommunication Services companies is 2.04, based on 304 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. NTT DOCOMO's current Debt-to-EBITDA of 0.22 is 89.2% below 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 NTT DOCOMO. For the Telecommunication Services industry, the median Debt-to-EBITDA is 2.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NTT DOCOMO's current Debt-to-EBITDA is 0.22, which is 38% above median its own 10-year median of 0.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NTT DOCOMO stock overvalued right now?
NTT DOCOMO (BUE:DCM) has a current Debt-to-EBITDA of 0.22. The current Debt-to-EBITDA is 0.22, which is 38% above median its 10-year median of 0.16 and 89.2% below the Telecommunication Services industry median of 2.04. NTT DOCOMO's overall GF Score™ is 10/100 with 5 warning signs to review. 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 NTT DOCOMO (BUE:DCM), the current Debt-to-EBITDA is 0.22 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.

NTT DOCOMO Business Description

Address Sanno Park Tower, 11-1, Nagata-cho 2-chome, Chiyoda-ku, Tokyo, JPN, 100-6150
NTT DoCoMo is Japan's largest wireless telephone operator. It has 78 million subscribers, leading to its market share of approximately 44%. The firm has been a technological leader, introducing wireless Internet access through its i-mode service in 1999, along with the ability to use a handset like a credit card. NTT DoCoMo also owns minority stakes in Philippine Long Distance Telephone, Hutchison Telecom Hong Kong Holdings, and other smaller phone companies. The firm's objective is to have the highest-quality network and customer service in Japan.