EKSN (Erickson) Debt-to-EBITDA : -91.77 (As of Jun. 2016)

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What is Erickson Debt-to-EBITDA?

Erickson EKSN Debt-to-EBITDA is -91.77 as of Jun. 2016.

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

Erickson's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2016 was $8.4 Mil. Erickson's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2016 was $480.9 Mil. Erickson's annualized EBITDA for the quarter that ended in Jun. 2016 was $-5.3 Mil. Erickson's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2016 was -91.77.

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

EKSN's Debt-to-EBITDA is not ranked *
in the Aerospace & Defense industry.
Industry Median: 1.795
* Ranked among companies with meaningful Debt-to-EBITDA only.

Erickson  (OTCPK:EKSN) 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.


Erickson Debt-to-EBITDA Related Terms


Erickson Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Erickson'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.

Erickson Debt-to-EBITDA Chart

Erickson Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Debt-to-EBITDA
Get a 7-Day Free Trial 3.11 1.80 5.47 5.73 8.92

Erickson Quarterly Data
Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16
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 12.23 3.10 28.95 -34.02 -91.77

EKSN vs : Debt-to-EBITDA Comparison

For the Aerospace & Defense subindustry, Erickson'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.


Erickson Debt-to-EBITDA vs Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Erickson's Debt-to-EBITDA distribution charts can be found below:

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



Erickson Debt-to-EBITDA Calculation

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

Erickson's Debt-to-EBITDA for the fiscal year that ended in Dec. 2015 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(8.205 + 460.947) / 52.574
=8.92

Erickson's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2016 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(8.421 + 480.88) / -5.332
=-91.77

* 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 (Jun. 2016) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of -91.77 mean?
Erickson (EKSN) has a Debt-to-EBITDA of -91.77 as of Jun. 2016. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Erickson.
Is Erickson's Debt-to-EBITDA too high?
Erickson's current Debt-to-EBITDA is -91.77.
How does Erickson's Debt-to-EBITDA compare to ?
Erickson's Debt-to-EBITDA of -91.77 can be compared against companies in the Aerospace & Defense industry. The industry median Debt-to-EBITDA is 1.80. 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 an Aerospace & Defense company?
The median Debt-to-EBITDA among Aerospace & Defense companies is 1.80, based on 254 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 Erickson. For the Aerospace & Defense industry, the median Debt-to-EBITDA is 1.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Erickson's current Debt-to-EBITDA is -91.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Erickson stock overvalued right now?
Erickson (EKSN) has a current Debt-to-EBITDA of -91.77. The current Debt-to-EBITDA is -91.77. 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 Erickson (EKSN), the current Debt-to-EBITDA is -91.77 as of Jun. 2016. 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.

Erickson Business Description

Comparable Companies
Address 3100 Willow Springs Road, Central Point, OR, USA, 97239
Erickson Inc owns and operates a diverse fleet of aircraft. The company offers support and maintenance, repair, remanufacture and related overhaul services to Aircrane and other aircrafts. In addition, the company leases aircrafts for specific missions. Geographically the activities are carried out through the region of United States.