Avanti Communications Group (LSE:AVN) Debt-to-EBITDA : -60.91 (As of Jun. 2020)

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What is Avanti Communications Group Debt-to-EBITDA?

Avanti Communications Group LSE:AVN -87.07% Debt-to-EBITDA is -60.91 as of Jun. 2020. The stock has 7 warning signs investors should review.

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

Avanti Communications Group's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2020 was £118.49 Mil. Avanti Communications Group's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2020 was £377.93 Mil. Avanti Communications Group's annualized EBITDA for the quarter that ended in Jun. 2020 was £-8.15 Mil. Avanti Communications Group's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2020 was -60.91.

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 Avanti Communications Group's Debt-to-EBITDA or its related term are showing as below:

LSE:AVN' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -47.2   Med: 1.77   Max: 646.25
Current: -14.26

During the past 13 years, the highest Debt-to-EBITDA Ratio of Avanti Communications Group was 646.25. The lowest was -47.20. And the median was 1.77.

LSE:AVN's Debt-to-EBITDA is not ranked
in the Telecommunication Services industry.
Industry Median: 2.04 vs LSE:AVN: -14.26

Avanti Communications Group  (LSE:AVN) 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.


Avanti Communications Group Debt-to-EBITDA Related Terms


Avanti Communications Group Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Avanti Communications Group'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.

Avanti Communications Group Debt-to-EBITDA Chart

Avanti Communications Group Annual Data
Trend Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Dec19
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 645.98 36.95 30.44 14.68 -11.14

Avanti Communications Group Semi-Annual Data
Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Jun19 Dec19 Jun20
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 -29.33 0.66 -21.68 -7.30 -60.91

LSE:AVN vs FNGR, FTRCQ, SYTE: Debt-to-EBITDA Comparison

For the Telecom Services subindustry, Avanti Communications Group'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.


Avanti Communications Group Debt-to-EBITDA vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Avanti Communications Group's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Avanti Communications Group's Debt-to-EBITDA falls into.



Avanti Communications Group Debt-to-EBITDA Calculation

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

Avanti Communications Group's Debt-to-EBITDA for the fiscal year that ended in Dec. 2019 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(115.976 + 332.897) / -40.286
=-11.14

Avanti Communications Group's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2020 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(118.492 + 377.927) / -8.15
=-60.91

* 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. 2020) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of -60.91 mean?
Avanti Communications Group (LSE:AVN) has a Debt-to-EBITDA of -60.91 as of Jun. 2020. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Avanti Communications Group.
Is Avanti Communications Group's Debt-to-EBITDA too high?
Avanti Communications Group's current Debt-to-EBITDA is -60.91.
How does Avanti Communications Group's Debt-to-EBITDA compare to FNGR and FTRCQ?
Avanti Communications Group's Debt-to-EBITDA of -60.91 can be compared against companies in the Telecommunication Services industry. The industry median Debt-to-EBITDA is 2.04. 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 Telecommunication Services company?
The median Debt-to-EBITDA among Telecommunication Services companies is 2.04, based on 304 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 Avanti Communications Group. For the Telecommunication Services industry, the median Debt-to-EBITDA is 2.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avanti Communications Group's current Debt-to-EBITDA is -60.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avanti Communications Group stock overvalued right now?
Avanti Communications Group (LSE:AVN) has a current Debt-to-EBITDA of -60.91. The current Debt-to-EBITDA is -60.91. 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 Avanti Communications Group (LSE:AVN), the current Debt-to-EBITDA is -60.91 as of Jun. 2020. 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.

Avanti Communications Group Business Description

Address 20 Black Friars Lane, Cobham House, London, GBR, EC4V 6EB
Avanti Communications Group PLC sells managed satellite data communications products to service providers on a wholesale basis. It uses the high-frequency Ka-band spectrum. The company's operating segments include Bandwidth and services, and Equipment. Its network can provide download speeds of up to 380Mbps. The company generates its revenues from the utilisation of its space assets, namely its spectrum rights and satellites. These assets include its spectrum rights, satellites, intellectual property, and ground station assets. It serves customers across Europe, the Middle East, and Africa.