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KMG Chemicals (KMG Chemicals) Debt-to-EBITDA : 2.56 (As of Jul. 2018)


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What is KMG Chemicals Debt-to-EBITDA?

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

KMG Chemicals's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jul. 2018 was $0.0 Mil. KMG Chemicals's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jul. 2018 was $306.1 Mil. KMG Chemicals's annualized EBITDA for the quarter that ended in Jul. 2018 was $119.8 Mil. KMG Chemicals's annualized Debt-to-EBITDA for the quarter that ended in Jul. 2018 was 2.55.

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

KMG's Debt-to-EBITDA is not ranked *
in the Chemicals industry.
Industry Median: 2.26
* Ranked among companies with meaningful Debt-to-EBITDA only.

KMG Chemicals Debt-to-EBITDA Historical Data

The historical data trend for KMG Chemicals'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.

KMG Chemicals Debt-to-EBITDA Chart

KMG Chemicals Annual Data
Trend Jul09 Jul10 Jul11 Jul12 Jul13 Jul14 Jul15 Jul16 Jul17 Jul18
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.81 1.24 0.81 9.69 2.59

KMG Chemicals Quarterly Data
Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18
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 8.07 3.23 2.88 2.56 2.56

Competitive Comparison of KMG Chemicals's Debt-to-EBITDA

For the Specialty Chemicals subindustry, KMG Chemicals'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.


KMG Chemicals's Debt-to-EBITDA Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, KMG Chemicals's Debt-to-EBITDA distribution charts can be found below:

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



KMG Chemicals Debt-to-EBITDA Calculation

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

KMG Chemicals's Debt-to-EBITDA for the fiscal year that ended in Jul. 2018 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0 + 306.119) / 118.147
=2.59

KMG Chemicals's annualized Debt-to-EBITDA for the quarter that ended in Jul. 2018 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0 + 306.119) / 119.824
=2.55

* 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 (Jul. 2018) EBITDA data.


KMG Chemicals  (NYSE:KMG) 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.


KMG Chemicals Debt-to-EBITDA Related Terms

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


KMG Chemicals (KMG Chemicals) Business Description

Traded in Other Exchanges
N/A
Address
KMG Chemicals Inc manufactures and sells a variety of chemicals and chemical-based products. The firm organizes itself into two segments based on product type. The electronic chemicals segment, which generates the majority of revenue, sells chemicals primarily to manufacturers of semiconductors. The other chemicals segment sells industrial sealants and lubricants primarily to the oil and gas storage and distribution industry as well as wood treatment chemicals used primarily to treat utility poles and cross arms. The majority of revenue comes from the United States.
Executives
Hunter John C Iii director C/O PENFORD CORPORATION, 7094 S. REVERE PARKWAY, CENTENNIAL CO 80112-3932
Karen A. Twitchell director 9 COURTLANDT PLACE, HOUSTON TX 77006
Christopher T. Fraser director, officer: President and CEO 9555 WEST SAM HOUSTON PARKWAY SOUTH, SUITE 600, HOUSTON TX 77099
Margaret C Montana director 910 LOUISIANA STREET, HOUSTON TX 77002
George W Gilman director 710 N. POST OAK RD., SUITE 400, HOUSTON TX 77024
James Gentilcore director NINE HAMPSHIRE STREET, MANSFIELD MA 02048
Malinda G Passmore officer: VP and CFO 9555 W SAM HOUSTON PARKWAY S, SUITE 600, HOUSTON TX 77099
Stephen A Thorington director 700 MILAM, SUITE 3100, HOUSTON TX 77002
Gendell Jeffrey L Et Al other: Former 10% Owner 200 PARK AVENUE SUITE 3900, NEW YORK NY 10166

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