Allocate Software (LSE:ALLA) Debt-to-EBITDA : 0.00 (As of May. 2014)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

What is Allocate Software Debt-to-EBITDA?

Allocate Software LSE:ALLA Debt-to-EBITDA is 0.00 as of May. 2014. The stock has 1 warning sign investors should review.

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

Allocate Software's Short-Term Debt & Capital Lease Obligation for the quarter that ended in May. 2014 was £0.00 Mil. Allocate Software's Long-Term Debt & Capital Lease Obligation for the quarter that ended in May. 2014 was £0.00 Mil. Allocate Software's annualized EBITDA for the quarter that ended in May. 2014 was £11.35 Mil. Allocate Software's annualized Debt-to-EBITDA for the quarter that ended in May. 2014 was 0.00.

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

LSE:ALLA's Debt-to-EBITDA is not ranked *
in the Software industry.
Industry Median: 1.02
* Ranked among companies with meaningful Debt-to-EBITDA only.

Allocate Software  (LSE:ALLA) 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.


Allocate Software Debt-to-EBITDA Related Terms


Allocate Software Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Allocate Software'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.

Allocate Software Debt-to-EBITDA Chart

Allocate Software Annual Data
Trend May05 May06 May07 May08 May09 May10 May11 May12 May13 May14
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.59 0.36 7.02 1.54 0.00

Allocate Software Semi-Annual Data
Nov04 May05 Nov05 May06 Nov06 May07 Nov07 May08 Nov08 May09 Nov09 May10 Nov10 May11 Nov11 May12 Nov12 May13 Nov13 May14
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 0.44 -15.27 0.73 0.00 0.00

LSE:ALLA vs SREV, ASUR: Debt-to-EBITDA Comparison

For the Software - Application subindustry, Allocate Software'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.


Allocate Software Debt-to-EBITDA vs Software Industry

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

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



Allocate Software Debt-to-EBITDA Calculation

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

Allocate Software's Debt-to-EBITDA for the fiscal year that ended in May. 2014 is calculated as

Allocate Software's annualized Debt-to-EBITDA for the quarter that ended in May. 2014 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0 + 0) / 11.352
=0.00

* 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 (May. 2014) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 0.00 mean?
Allocate Software (LSE:ALLA) has a Debt-to-EBITDA of 0.00 as of May. 2014. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Allocate Software.
Is Allocate Software's Debt-to-EBITDA too high?
Allocate Software's current Debt-to-EBITDA is 0.00.
How does Allocate Software's Debt-to-EBITDA compare to SREV and ASUR?
Allocate Software's Debt-to-EBITDA of 0.00 can be compared against companies in the Software industry. The industry median Debt-to-EBITDA is 1.02. 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 Software company?
The median Debt-to-EBITDA among Software companies is 1.02, based on 1,727 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 Allocate Software. For the Software industry, the median Debt-to-EBITDA is 1.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allocate Software's current Debt-to-EBITDA is 0.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allocate Software stock overvalued right now?
Allocate Software (LSE:ALLA) has a current Debt-to-EBITDA of 0.00. The current Debt-to-EBITDA is 0.00. 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 Allocate Software (LSE:ALLA), the current Debt-to-EBITDA is 0.00 as of May. 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.

Allocate Software Business Description

Allocate Software PLC is engaged in the development, sale and support of workforce management solutions, and the provision of related IT services to major healthcare, defence, government and commercial customers. The business of the company is focused principally on the Healthcare market in addition to Defence. Its segments are Licence, Subscriptions, Support, and Services. Licence and Subscriptions segments represent the sale of non-cancellable software licence agreements and subscriptions associated with that software. Support and Services segments represent the provision of installation, consulting, training and product support. It operates in UK, Europe, USA and Australia.