Alternative Energy (LSE:ALR) Debt-to-EBITDA : -3.03 (As of Jun. 2014)

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What is Alternative Energy Debt-to-EBITDA?

Alternative Energy LSE:ALR Debt-to-EBITDA is -3.03 as of Jun. 2014. The stock has 4 warning signs investors should review.

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

Alternative Energy's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2014 was £2.33 Mil. Alternative Energy's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2014 was £0.00 Mil. Alternative Energy's annualized EBITDA for the quarter that ended in Jun. 2014 was £-0.77 Mil. Alternative Energy's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2014 was -3.03.

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

LSE:ALR's Debt-to-EBITDA is not ranked *
in the Utilities - Independent Power Producers industry.
Industry Median: 4.625
* Ranked among companies with meaningful Debt-to-EBITDA only.

Alternative Energy  (LSE:ALR) 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.


Alternative Energy Debt-to-EBITDA Related Terms


Alternative Energy Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Alternative Energy'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.

Alternative Energy Debt-to-EBITDA Chart

Alternative Energy Annual Data
Trend Aug07 Aug08 Aug09 Aug10 Aug11 Aug12 Dec13
Debt-to-EBITDA
Get a 7-Day Free Trial 0.00 -0.35 -0.70 -1.24 -0.28

Alternative Energy Semi-Annual Data
Feb10 Aug10 Feb11 Aug11 Feb12 Aug12 Jun13 Dec13 Jun14
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only -1.14 -1.33 -1.75 -0.15 -3.03

Alternative Energy Debt-to-EBITDA Competitor Comparison

For the Utilities - Independent Power Producers subindustry, Alternative Energy'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.


Alternative Energy Debt-to-EBITDA vs Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Alternative Energy's Debt-to-EBITDA distribution charts can be found below:

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



Alternative Energy Debt-to-EBITDA Calculation

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

Alternative Energy's Debt-to-EBITDA for the fiscal year that ended in Dec. 2013 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(2.383 + 0) / -8.666
=-0.27

Alternative Energy's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2014 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(2.332 + 0) / -0.77
=-3.03

* 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 (Jun. 2014) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of -3.03 mean?
Alternative Energy (LSE:ALR) has a Debt-to-EBITDA of -3.03 as of Jun. 2014. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Alternative Energy.
Is Alternative Energy's Debt-to-EBITDA too high?
Alternative Energy's current Debt-to-EBITDA is -3.03.
How does Alternative Energy's Debt-to-EBITDA compare to competitors?
Alternative Energy's Debt-to-EBITDA of -3.03 can be compared against companies in the Utilities - Independent Power Producers industry. The industry median Debt-to-EBITDA is 4.63. 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 Utilities - Independent Power Producers company?
The median Debt-to-EBITDA among Utilities - Independent Power Producers companies is 4.63, based on 340 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 Alternative Energy. For the Utilities - Independent Power Producers industry, the median Debt-to-EBITDA is 4.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alternative Energy's current Debt-to-EBITDA is -3.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alternative Energy stock overvalued right now?
Alternative Energy (LSE:ALR) has a current Debt-to-EBITDA of -3.03. The current Debt-to-EBITDA is -3.03. 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 Alternative Energy (LSE:ALR), the current Debt-to-EBITDA is -3.03 as of Jun. 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.

Alternative Energy Business Description

Alternative Energy Ltd provides technology, hardware and equipment for renewable energy and green energy solutions. Its solutions include Renewable Energy, The E-Roof - The PC of Energy, and AEL Energy Saving products such as eLIVE and eLUMEN. It also makes acquisitions to develop energy technologies, business and companies which offer an alternative to conventional fossil fuel and nuclear methods of generating household and industrial energy, as well as providing management services to its subsidiaries.