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Edge Resources (LSE:EDG) Debt-to-EBITDA : -7.07 (As of Dec. 2015)


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What is Edge Resources Debt-to-EBITDA?

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

Edge Resources's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2015 was £3.77 Mil. Edge Resources's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2015 was £5.48 Mil. Edge Resources's annualized EBITDA for the quarter that ended in Dec. 2015 was £-1.31 Mil. Edge Resources's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2015 was -7.07.

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

LSE:EDG's Debt-to-EBITDA is not ranked *
in the Oil & Gas industry.
Industry Median: 1.76
* Ranked among companies with meaningful Debt-to-EBITDA only.

Edge Resources Debt-to-EBITDA Historical Data

The historical data trend for Edge Resources'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.

Edge Resources Debt-to-EBITDA Chart

Edge Resources Annual Data
Trend Mar01 Mar02 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only -8.17 193.71 -14.12 13.07 6.40

Edge Resources Quarterly Data
Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15
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 4.02 61.22 -33.57 -8.63 -7.07

Competitive Comparison of Edge Resources's Debt-to-EBITDA

For the Oil & Gas E&P subindustry, Edge Resources'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.


Edge Resources's Debt-to-EBITDA Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Edge Resources's Debt-to-EBITDA distribution charts can be found below:

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



Edge Resources Debt-to-EBITDA Calculation

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

Edge Resources's Debt-to-EBITDA for the fiscal year that ended in Mar. 2015 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(3.418 + 5.643) / 1.416
=6.40

Edge Resources's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2015 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(3.77 + 5.478) / -1.308
=-7.07

* 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 four times the quarterly (Dec. 2015) EBITDA data.


Edge Resources  (LSE:EDG) 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.


Edge Resources Debt-to-EBITDA Related Terms

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


Edge Resources (LSE:EDG) Business Description

Traded in Other Exchanges
N/A
Address
Elveden House, 717 - 7th Avenue SW, Suite 1400, Calgary, AB, CAN, T2P 0Z3
Edge Resources Inc is engaged in the acquisition, exploration, development, and production of oil and natural gas in Alberta and Saskatchewan, Canada. Its projects include Grand Forks, Willesden Green North, and Primate.

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