African Copper (LSE:ACU) Debt-to-EBITDA : 3.64 (As of Sep. 2014)

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What is African Copper Debt-to-EBITDA?

African Copper LSE:ACU +10.00% Debt-to-EBITDA is 3.64 as of Sep. 2014. The stock has 4 warning signs investors should review.

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

African Copper's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2014 was £1.90 Mil. African Copper's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2014 was £5.53 Mil. African Copper's annualized EBITDA for the quarter that ended in Sep. 2014 was £2.04 Mil. African Copper's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2014 was 3.64.

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

LSE:ACU's Debt-to-EBITDA is not ranked *
in the Metals & Mining industry.
Industry Median: 1.16
* Ranked among companies with meaningful Debt-to-EBITDA only.

African Copper  (LSE:ACU) 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.


African Copper Debt-to-EBITDA Related Terms


African Copper Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for African Copper'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.

African Copper Debt-to-EBITDA Chart

African Copper Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Mar11 Mar12 Mar13 Mar14
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 0.00 -0.21 -1.42 -0.20

African Copper Semi-Annual Data
Jun05 Dec05 Jun06 Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Sep10 Mar11 Sep11 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14
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 -1.33 10.94 -0.10 1.77 3.64

African Copper Debt-to-EBITDA Competitor Comparison

For the Copper subindustry, African Copper'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.


African Copper Debt-to-EBITDA vs Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, African Copper's Debt-to-EBITDA distribution charts can be found below:

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



African Copper Debt-to-EBITDA Calculation

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

African Copper's Debt-to-EBITDA for the fiscal year that ended in Mar. 2014 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(1.354 + 0.949) / -11.679
=-0.20

African Copper's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2014 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(1.904 + 5.533) / 2.044
=3.64

* 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 two times the quarterly (Sep. 2014) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 3.64 mean?
African Copper (LSE:ACU) has a Debt-to-EBITDA of 3.64 as of Sep. 2014. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on African Copper.
Is African Copper's Debt-to-EBITDA too high?
African Copper's current Debt-to-EBITDA is 3.64. The Metals & Mining industry median Debt-to-EBITDA is 1.16. African Copper's value of 3.64 is 213.8% above this industry median.
How does African Copper's Debt-to-EBITDA compare to competitors?
African Copper's Debt-to-EBITDA of 3.64 can be compared against companies in the Metals & Mining industry. The industry median Debt-to-EBITDA is 1.16. African Copper's value of 3.64 is 213.8% above this benchmark. 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 Metals & Mining company?
The median Debt-to-EBITDA among Metals & Mining companies is 1.16, based on 600 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. African Copper's current Debt-to-EBITDA of 3.64 is 213.8% above 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 African Copper. For the Metals & Mining industry, the median Debt-to-EBITDA is 1.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. African Copper's current Debt-to-EBITDA is 3.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is African Copper stock overvalued right now?
African Copper (LSE:ACU) has a current Debt-to-EBITDA of 3.64. The current Debt-to-EBITDA is 3.64 and 213.8% above the Metals & Mining industry median of 1.16. 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 African Copper (LSE:ACU), the current Debt-to-EBITDA is 3.64 as of Sep. 2014. 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.

African Copper Business Description

African Copper PLC was incorporated on February 11, 2004 in England and Wales. The Company is engaged in the exploration for, development and mining of, copper deposits in the Republic of Botswana. Its main activity is that of a holding company. Its main project is the copper producing open pit Mowana mine. The Company's wholly-owned subsidiary Messina holds the Dukwe Project comprising exploration licence PL 33/2005, with an area of 139.6 km2. The Dukwe Project with its associated licences encompasses the Mowana Mine and all current estimated mineral resources and reserves associated with the mine; together with north and south extensions of mineralization that lie outside of the Mowana Mine licence area. It also owns the rights to the adjacent Thakadu-Makala deposits and holds permits in exploration properties at the Matsitama Project which is contiguous to the southern boundary of the Mowana Mine.