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RAM Active Media (LSE:RAM) Debt-to-EBITDA : -0.36 (As of Dec. 2012)


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What is RAM Active Media Debt-to-EBITDA?

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

RAM Active Media's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2012 was £1.19 Mil. RAM Active Media's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2012 was £0.16 Mil. RAM Active Media's annualized EBITDA for the quarter that ended in Dec. 2012 was £-3.79 Mil. RAM Active Media's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2012 was -0.36.

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 RAM Active Media's Debt-to-EBITDA or its related term are showing as below:

LSE:RAM's Debt-to-EBITDA is not ranked *
in the Media - Diversified industry.
Industry Median: 1.69
* Ranked among companies with meaningful Debt-to-EBITDA only.

RAM Active Media Debt-to-EBITDA Historical Data

The historical data trend for RAM Active Media'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.

RAM Active Media Debt-to-EBITDA Chart

RAM Active Media Annual Data
Trend May03 May04 May05 May06 May07 May08 Dec09 Dec10 Dec11 Dec12
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.65 -0.26 -0.81 -0.26 -0.52

RAM Active Media Semi-Annual Data
Nov02 May03 Nov03 May04 Nov04 May05 Nov05 May06 Nov06 May07 Nov07 May08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12
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 -0.81 - -0.17 -0.08 -0.36

Competitive Comparison of RAM Active Media's Debt-to-EBITDA

For the Broadcasting subindustry, RAM Active Media'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.


RAM Active Media's Debt-to-EBITDA Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, RAM Active Media's Debt-to-EBITDA distribution charts can be found below:

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



RAM Active Media Debt-to-EBITDA Calculation

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

RAM Active Media'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
=(1.186 + 0.161) / -2.582
=-0.52

RAM Active Media'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
=(1.186 + 0.161) / -3.794
=-0.36

* 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. 2012) EBITDA data.


RAM Active Media  (LSE:RAM) 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.


RAM Active Media Debt-to-EBITDA Related Terms

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


RAM Active Media (LSE:RAM) Business Description

Traded in Other Exchanges
N/A
Address
RAM Active Media PLC is incorporated and domiciled in United Kingdom. The Company and its subsidiaries operate in the passenger information and communications systems and Digital out of Home advertising markets. It focuses on digital communication opportunities within the railway and the shopping mall sector within the UK.