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Preferred Commerce (Preferred Commerce) Debt-to-EBITDA : -2.85 (As of Nov. 2015)


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What is Preferred Commerce Debt-to-EBITDA?

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

Preferred Commerce's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Nov. 2015 was $4.39 Mil. Preferred Commerce's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Nov. 2015 was $0.00 Mil. Preferred Commerce's annualized EBITDA for the quarter that ended in Nov. 2015 was $-1.54 Mil. Preferred Commerce's annualized Debt-to-EBITDA for the quarter that ended in Nov. 2015 was -2.85.

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

CELV's Debt-to-EBITDA is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 2.2
* Ranked among companies with meaningful Debt-to-EBITDA only.

Preferred Commerce Debt-to-EBITDA Historical Data

The historical data trend for Preferred Commerce'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.

Preferred Commerce Debt-to-EBITDA Chart

Preferred Commerce Annual Data
Trend Nov07 Nov08 Nov09 Nov10 Nov14 Nov15
Debt-to-EBITDA
Get a 7-Day Free Trial - - - -1.93 -2.85

Preferred Commerce Semi-Annual Data
Nov07 Nov08 Nov09 Nov10 Nov14 Nov15
Debt-to-EBITDA Get a 7-Day Free Trial - - - -1.93 -2.85

Competitive Comparison of Preferred Commerce's Debt-to-EBITDA

For the Packaged Foods subindustry, Preferred Commerce'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.


Preferred Commerce's Debt-to-EBITDA Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Preferred Commerce's Debt-to-EBITDA distribution charts can be found below:

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



Preferred Commerce Debt-to-EBITDA Calculation

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

Preferred Commerce's Debt-to-EBITDA for the fiscal year that ended in Nov. 2015 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(4.394 + 0) / -1.544
=-2.85

Preferred Commerce's annualized Debt-to-EBITDA for the quarter that ended in Nov. 2015 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(4.394 + 0) / -1.544
=-2.85

* 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 one times the quarterly (Nov. 2015) EBITDA data.


Preferred Commerce  (OTCPK:CELV) 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.


Preferred Commerce Debt-to-EBITDA Related Terms

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


Preferred Commerce (Preferred Commerce) Business Description

Traded in Other Exchanges
N/A
Address
3260 Fairline Farms Road, Unit No. 1, Wellington, FL, USA, 33414
Preferred Commerce Inc is focused on health and wellness products with main product being Thriv5. Thriv5 products contain Superoxide Dismutase (SOD) combined with antioxidants, soluble corn fiber and other ingredients that help the human body regenerate healthy cells and strengthen the immune system. The company is promoting the product through retail stores, online sales, and social media.