Essar Energy (LSE:ESSR) Debt-to-EBITDA : 10.12 (As of Mar. 2013)

Essar Energy Debt-to-EBITDA Chart

Competitive Comparison of Essar Energy's Debt-to-EBITDA

For the Oil & Gas Refining & Marketing subindustry, Essar 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.

Essar Energy's Debt-to-EBITDA Distribution in the Oil & Gas Industry

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

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

Essar Energy Debt-to-EBITDA Calculation

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

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

Essar Energy's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2013 is calculated as

* 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 one times the quarterly (Mar. 2013) EBITDA data.

Essar Energy  (LSE:ESSR) 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.

Essar Energy Debt-to-EBITDA Related Terms

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Essar Energy Business Description