CDU (LSE:CDU) Debt-to-EBITDA : -0.70 (As of Mar. 2010)

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 CDU Debt-to-EBITDA?

CDU LSE:CDU Debt-to-EBITDA is -0.70 as of Mar. 2010.

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

CDU's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2010 was £0.00 Mil. CDU's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2010 was £0.34 Mil. CDU's annualized EBITDA for the quarter that ended in Mar. 2010 was £-0.49 Mil. CDU's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2010 was -0.70.

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

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

CDU  (LSE:CDU) 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.

CDU Debt-to-EBITDA Related Terms

CDU Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for CDU'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.

CDU Debt-to-EBITDA Chart

CDU Annual Data
Trend Sep99 Sep00 Sep01 Sep02 Sep04 Sep05 Sep06 Sep07 Sep08 Sep09
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.19 0.17 -0.37 -9.11 -0.61

CDU Semi-Annual Data
Mar02 Sep02 Mar03 Sep03 Mar04 Sep04 Mar05 Sep05 Mar06 Sep06 Mar07 Sep07 Mar08 Sep08 Mar09 Sep09 Mar10
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 0.00 -0.11 0.86 -0.15 -0.70

CDU Debt-to-EBITDA Competitor Comparison

For the subindustry, CDU'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.

CDU Debt-to-EBITDA vs Industry

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

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


CDU Debt-to-EBITDA Calculation

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

CDU's Debt-to-EBITDA for the fiscal year that ended in Sep. 2009 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0 + 0.341) / -0.563
=-0.61

CDU's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2010 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0 + 0.341) / -0.488
=-0.70

* 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 (Mar. 2010) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of -0.70 mean?
CDU (LSE:CDU) has a Debt-to-EBITDA of -0.70 as of Mar. 2010. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on CDU.
Is CDU's Debt-to-EBITDA too high?
CDU's current Debt-to-EBITDA is -0.70.
How does CDU's Debt-to-EBITDA compare to competitors?
CDU's Debt-to-EBITDA is -0.70. 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 company?
A good Debt-to-EBITDA depends on the industry context. 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 CDU. CDU's current Debt-to-EBITDA is -0.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CDU stock overvalued right now?
CDU (LSE:CDU) has a current Debt-to-EBITDA of -0.70. The current Debt-to-EBITDA is -0.70. 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 CDU (LSE:CDU), the current Debt-to-EBITDA is -0.70 as of Mar. 2010. 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.