Lonrho (LSE:LONR) Debt-to-EBITDA : -2.91 (As of Dec. 2012)

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What is Lonrho Debt-to-EBITDA?

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

Lonrho's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2012 was £30.0 Mil. Lonrho's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2012 was £77.6 Mil. Lonrho's annualized EBITDA for the quarter that ended in Dec. 2012 was £-37.0 Mil. Lonrho's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2012 was -2.91.

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

During the past 13 years, the highest Debt-to-EBITDA Ratio of Lonrho was 6.95. The lowest was -16.30. And the median was 2.03.

LSE:LONR's Debt-to-EBITDA is not ranked ^*
in the Conglomerates industry.
Industry Median: 3.3
* Ranked among companies with meaningful Debt-to-EBITDA only.

Lonrho Debt-to-EBITDA Historical Data

The historical data trend for Lonrho'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.

Lonrho Debt-to-EBITDA Chart

Lonrho Annual Data

Trend

Sep03

Sep04

Sep05

Sep06

Sep07

Sep08

Sep09

Sep10

Sep11

Dec12

Debt-to-EBITDA

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-0.35

19.00

3.29

6.52

Lonrho Semi-Annual Data
	Mar02	Sep02	Mar03	Sep03	Mar05	Sep05	Mar06	Sep06	Mar07	Sep07	Mar08	Sep08	Mar09	Sep09	Mar10	Sep10	Mar11	Sep11	Jun12	Dec12
Debt-to-EBITDA	Get a 7-Day Free Trial															2.33	11.57	3.00	1.30	-2.91

Competitive Comparison of Lonrho's Debt-to-EBITDA

For the Conglomerates subindustry, Lonrho'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.

Lonrho's Debt-to-EBITDA Distribution in the Conglomerates Industry

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

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

Lonrho Debt-to-EBITDA Calculation

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

Lonrho's Debt-to-EBITDA for the fiscal year that ended in Dec. 2012 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(30	+	77.6)	/	16.5
	=	6.52

Lonrho's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2012 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(30	+	77.6)	/	-37
	=	-2.91

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 (Dec. 2012) EBITDA data.

Lonrho (LSE:LONR) 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.

Lonrho Debt-to-EBITDA Related Terms

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

Lonrho (LSE:LONR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Lonrho PLC (LSE:LONR) » Definitions » Debt-to-EBITDA

Traded in Other Exchanges

N/A

Address

Level 2, 25 Berkeley Square, London, GBR, W1J 6HB

Website

http://www.lonrho.com

Lonrho PLC is engaged in providing the infrastructure and services required for the growing oil, mineral and agricultural sectors in Africa. The Company has a diverse portfolio of investments across Sub-Saharan Africa in four core operating sectors: Agribusiness, Infrastructure, Hotels and Support Services. Agribusiness vertically integrates the production, sourcing, logistics, processing and distribution of agricultural products from Sub-Saharan Africa to the consumer. The division supplies to its retailers in Sub-Saharan Africa, Europe, the USA, Middle East, Scandinavia and the Far East. The division also distributes agricultural and heavy machinery. Infrastructure division develops and manages oil logistics terminals. Luba Freeport, the oil service terminal in the Gulf of Guinea, has attracted oil service companies to be long term tenants at the port to service oï¬€shore exploration and production rigs. The Company's Hotel division includes hotels centred on the commercial, conference and business related markets across the Continent. It owns or manages hotels in Lubumbashi and Kinshasa in the Democratic Republic of the Congo, Maputo in Mozambique, Gaborone in Botswana and Mutare in Zimbabwe. IT business is a full systems integrator and manager that designs, builds, develops and integrates IT solutions for large corporate clients, banks and governments and then undertakes management contracts to run and manage installations. The IT division is a distributor for Cisco, Microsoft, Dell and Hewlett Packard systems and equipment.

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