Management Consulting Group (LSE:MMC) Debt-to-EBITDA : -0.25 (As of Dec. 2019)

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What is Management Consulting Group Debt-to-EBITDA?

Management Consulting Group LSE:MMC -30.09% Debt-to-EBITDA is -0.25 as of Dec. 2019. The stock has 3 warning signs investors should review.

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

Management Consulting Group's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2019 was £0.75 Mil. Management Consulting Group's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2019 was £0.97 Mil. Management Consulting Group's annualized EBITDA for the quarter that ended in Dec. 2019 was £-6.82 Mil. Management Consulting Group's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2019 was -0.25.

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 Management Consulting Group's Debt-to-EBITDA or its related term are showing as below:

LSE:MMC' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -14.93   Med: 2.04   Max: 9.05
Current: -0.33

During the past 13 years, the highest Debt-to-EBITDA Ratio of Management Consulting Group was 9.05. The lowest was -14.93. And the median was 2.04.

LSE:MMC's Debt-to-EBITDA is not ranked
in the Business Services industry.
Industry Median: 1.66 vs LSE:MMC: -0.33

Management Consulting Group  (LSE:MMC) 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.


Management Consulting Group Debt-to-EBITDA Related Terms


Management Consulting Group Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Management Consulting Group'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.

Management Consulting Group Debt-to-EBITDA Chart

Management Consulting Group Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only -14.93 0.00 0.00 0.00 -0.33

Management Consulting Group Semi-Annual Data
Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19
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 0.00 0.00 0.00 -0.58 -0.25

LSE:MMC vs INFO, VRSK, EFX: Debt-to-EBITDA Comparison

For the Consulting Services subindustry, Management Consulting Group'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.


Management Consulting Group Debt-to-EBITDA vs Business Services Industry

For the Business Services industry and Industrials sector, Management Consulting Group's Debt-to-EBITDA distribution charts can be found below:

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



Management Consulting Group Debt-to-EBITDA Calculation

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

Management Consulting Group's Debt-to-EBITDA for the fiscal year that ended in Dec. 2019 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0.75 + 0.965) / -5.144
=-0.33

Management Consulting Group's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2019 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0.75 + 0.965) / -6.818
=-0.25

* 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 (Dec. 2019) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of -0.25 mean?
Management Consulting Group (LSE:MMC) has a Debt-to-EBITDA of -0.25 as of Dec. 2019. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Management Consulting Group.
Is Management Consulting Group's Debt-to-EBITDA too high?
Management Consulting Group's current Debt-to-EBITDA is -0.25.
How does Management Consulting Group's Debt-to-EBITDA compare to INFO and VRSK?
Management Consulting Group's Debt-to-EBITDA of -0.25 can be compared against companies in the Business Services industry. The industry median Debt-to-EBITDA is 1.66. 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 Business Services company?
The median Debt-to-EBITDA among Business Services companies is 1.66, based on 834 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. 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 Management Consulting Group. For the Business Services industry, the median Debt-to-EBITDA is 1.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Management Consulting Group's current Debt-to-EBITDA is -0.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Management Consulting Group stock overvalued right now?
Based on GuruFocus' analysis, Management Consulting Group (LSE:MMC) is currently considered Possible Value Trap. The current Debt-to-EBITDA is -0.25. 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 Management Consulting Group (LSE:MMC), the current Debt-to-EBITDA is -0.25 as of Dec. 2019. 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.

Management Consulting Group Business Description

Address 10 Warwick Lane, St. Paul’s House, 4th Floor, London, GBR, EC4M 7BP
Management Consulting Group PLC is engaged in providing professional services to various industries and sectors via the Proudfoot practice. Proudfoot, which is a professional service practice designs, implements and accelerates the operational transformation that realizes tomorrow's results today. The company serves various industries including manufacturing, natural resources, consumer packaged goods, transportation, automotive, building materials and heavy industry. It also provides market-specific local customization for Financial Services and Healthcare sectors. The company provides its services in the Americas, Europe among other regions, and generates a vast majority of its revenue from Europe.