SolarWorld AG (HAM:SWVK) Debt-to-EBITDA : -2.90 (As of Dec. 2016)

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What is SolarWorld AG Debt-to-EBITDA?

SolarWorld AG HAM:SWVK +106.45% Debt-to-EBITDA is -2.90 as of Dec. 2016.

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

SolarWorld AG's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2016 was €68.5 Mil. SolarWorld AG's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2016 was €322.0 Mil. SolarWorld AG's annualized EBITDA for the quarter that ended in Dec. 2016 was €-134.7 Mil. SolarWorld AG's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2016 was -2.90.

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

HAM:SWVK's Debt-to-EBITDA is not ranked *
in the Semiconductors industry.
Industry Median: 1.445
* Ranked among companies with meaningful Debt-to-EBITDA only.

SolarWorld AG  (HAM:SWVK) 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.


SolarWorld AG Debt-to-EBITDA Related Terms


SolarWorld AG Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for SolarWorld AG'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.

SolarWorld AG Debt-to-EBITDA Chart

SolarWorld AG Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only -4.88 -6.28 0.69 14.66 -14.38

SolarWorld AG Quarterly Data
Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16
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 7.72 48.61 5.82 -8.34 -2.90

HAM:SWVK vs SUNW, RGSE: Debt-to-EBITDA Comparison

For the Solar subindustry, SolarWorld AG'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.


SolarWorld AG Debt-to-EBITDA vs Semiconductors Industry

For the Semiconductors industry and Technology sector, SolarWorld AG's Debt-to-EBITDA distribution charts can be found below:

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



SolarWorld AG Debt-to-EBITDA Calculation

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

SolarWorld AG's Debt-to-EBITDA for the fiscal year that ended in Dec. 2016 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(68.501 + 321.974) / -27.152
=-14.38

SolarWorld AG's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2016 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(68.501 + 321.974) / -134.7
=-2.90

* 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 (Dec. 2016) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of -2.90 mean?
SolarWorld AG (HAM:SWVK) has a Debt-to-EBITDA of -2.90 as of Dec. 2016. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on SolarWorld AG.
Is SolarWorld AG's Debt-to-EBITDA too high?
SolarWorld AG's current Debt-to-EBITDA is -2.90.
How does SolarWorld AG's Debt-to-EBITDA compare to SUNW and RGSE?
SolarWorld AG's Debt-to-EBITDA of -2.90 can be compared against companies in the Semiconductors industry. The industry median Debt-to-EBITDA is 1.45. 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 Semiconductors company?
The median Debt-to-EBITDA among Semiconductors companies is 1.45, based on 722 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 SolarWorld AG. For the Semiconductors industry, the median Debt-to-EBITDA is 1.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SolarWorld AG's current Debt-to-EBITDA is -2.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SolarWorld AG stock overvalued right now?
SolarWorld AG (HAM:SWVK) has a current Debt-to-EBITDA of -2.90. The current Debt-to-EBITDA is -2.90. 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 SolarWorld AG (HAM:SWVK), the current Debt-to-EBITDA is -2.90 as of Dec. 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.

SolarWorld AG Business Description

Address Martin-Luther-King-Street 24, Bonn, DEU, 53175
SolarWorld AG is a manufacturer of solar power products. It also researches, develops, produces and recycles on all levels of the solar value-added chain. It also focuses on the production and international distribution of high-end solar energy facilities. The business operates through segments that include Production Germany, Production United States, Trade, and Others. The Trade segment generates maximum revenue for the company. Its product line consists of module and assembly kit, cells and wafers, power generation, and other revenue. The sales of module and assembly kit generate maximum revenue for the company.