Cavendish Financial (LSE:CAV) Debt-to-EBITDA : -4.41 (As of Sep. 2023)

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What is Cavendish Financial Debt-to-EBITDA?

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

Cavendish Financial's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was £0.41 Mil. Cavendish Financial's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was £10.51 Mil. Cavendish Financial's annualized EBITDA for the quarter that ended in Sep. 2023 was £-2.48 Mil. Cavendish Financial's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 was -4.41.

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 Cavendish Financial's Debt-to-EBITDA or its related term are showing as below:

LSE:CAV' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -3.37 Med: 0.23 Max: 1.4
Current: -2.92

During the past 8 years, the highest Debt-to-EBITDA Ratio of Cavendish Financial was 1.40. The lowest was -3.37. And the median was 0.23.

LSE:CAV's Debt-to-EBITDA is ranked worse than
100% of 415 companies
in the Capital Markets industry
Industry Median: 1.35 vs LSE:CAV: -2.92

Cavendish Financial Debt-to-EBITDA Historical Data

The historical data trend for Cavendish Financial'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.

Cavendish Financial Debt-to-EBITDA Chart

Cavendish Financial Annual Data

Trend

Apr15

Apr16

Apr17

Apr18

Mar20

Mar21

Mar22

Mar23

Debt-to-EBITDA

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0.23

0.19

1.40

1.36

-3.37

Cavendish Financial Semi-Annual Data
	Apr16	Apr17	Oct17	Apr18	Oct18	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Debt-to-EBITDA	Get a 7-Day Free Trial									1.02	2.38	-4.15	-2.65	-4.41

Competitive Comparison of Cavendish Financial's Debt-to-EBITDA

For the Capital Markets subindustry, Cavendish Financial'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.

Cavendish Financial's Debt-to-EBITDA Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Cavendish Financial's Debt-to-EBITDA distribution charts can be found below:

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

Cavendish Financial Debt-to-EBITDA Calculation

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

Cavendish Financial's Debt-to-EBITDA for the fiscal year that ended in Mar. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(2.768	+	10.489)	/	-3.934
	=	-3.37

Cavendish Financial's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(0.414	+	10.505)	/	-2.478
	=	-4.41

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. 2023) EBITDA data.

Cavendish Financial (LSE:CAV) 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.

Cavendish Financial Debt-to-EBITDA Related Terms

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

Cavendish Financial (LSE:CAV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Cavendish Financial Plc (LSE:CAV) » Definitions » Debt-to-EBITDA

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Traded in Other Exchanges

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Address

1 Bartholomew Close, London, GBR, EC1A 7BL

Website

https://www.finncapcavendish.com

Cavendish Financial Plc is one of the UK's leading mid-market M&A advisers with unrivalled expertise in sell-side M&A, buy-side M&A, debt advisory and private fundraising services. The Group provides a range of services to both public and private companies, from equity raising in capital markets to M&A, debt advisory, and private growth capital.

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