Torotrak (LSE:TRK) Debt-to-EBITDA : -0.06 (As of Mar. 2017)

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What is Torotrak Debt-to-EBITDA?

Torotrak LSE:TRK Debt-to-EBITDA is -0.06 as of Mar. 2017. The stock has 4 warning signs investors should review.

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

Torotrak's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2017 was £0.12 Mil. Torotrak's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2017 was £1.89 Mil. Torotrak's annualized EBITDA for the quarter that ended in Mar. 2017 was £-34.16 Mil. Torotrak's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2017 was -0.06.

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

LSE:TRK's Debt-to-EBITDA is not ranked *
in the Vehicles & Parts industry.
Industry Median: 2.295
* Ranked among companies with meaningful Debt-to-EBITDA only.

Torotrak  (LSE:TRK) 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.


Torotrak Debt-to-EBITDA Related Terms


Torotrak Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Torotrak'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.

Torotrak Debt-to-EBITDA Chart

Torotrak Annual Data
Trend Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.25 -0.77 -0.47 -0.17 -0.10

Torotrak Semi-Annual Data
Sep07 Mar08 Sep08 Mar09 Sep09 Mar10 Sep10 Mar11 Sep11 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17
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 -0.43 -0.12 -0.29 -0.34 -0.06

LSE:TRK vs DLPH: Debt-to-EBITDA Comparison

For the Auto Parts subindustry, Torotrak'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.


Torotrak Debt-to-EBITDA vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Torotrak's Debt-to-EBITDA distribution charts can be found below:

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



Torotrak Debt-to-EBITDA Calculation

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

Torotrak's Debt-to-EBITDA for the fiscal year that ended in Mar. 2017 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0.116 + 1.885) / -20.079
=-0.10

Torotrak's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2017 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0.116 + 1.885) / -34.158
=-0.06

* 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 (Mar. 2017) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of -0.06 mean?
Torotrak (LSE:TRK) has a Debt-to-EBITDA of -0.06 as of Mar. 2017. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Torotrak.
Is Torotrak's Debt-to-EBITDA too high?
Torotrak's current Debt-to-EBITDA is -0.06.
How does Torotrak's Debt-to-EBITDA compare to DLPH?
Torotrak's Debt-to-EBITDA of -0.06 can be compared against companies in the Vehicles & Parts industry. The industry median Debt-to-EBITDA is 2.30. 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 Vehicles & Parts company?
The median Debt-to-EBITDA among Vehicles & Parts companies is 2.30, based on 1,112 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 Torotrak. For the Vehicles & Parts industry, the median Debt-to-EBITDA is 2.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Torotrak's current Debt-to-EBITDA is -0.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Torotrak stock overvalued right now?
Torotrak (LSE:TRK) has a current Debt-to-EBITDA of -0.06. The current Debt-to-EBITDA is -0.06. 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 Torotrak (LSE:TRK), the current Debt-to-EBITDA is -0.06 as of Mar. 2017. 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.

Torotrak Business Description

Comparable Companies LSE:SCELSE:AUTGLSE:GKNDLPH
Address 1 Aston Way, Leyland, Lancs, GBR, PR26 7UX
Torotrak PLC is a technology development company. It designs, develops and offers technologies that are focused on products, such as infinitely variable transmissions (IVTs), variable drive superchargers (V-Charge) and mechanical kinetic energy recovery systems (Flybrid). The company operates its business through the following segments, Licence Agreements, Engineering Services, and Development Activities, Including Research and The Creation of New Intellectual Property. Its Flybrid technology relates to high-speed flywheels which are used vehicles, V-Charge technology is used to control emissions in gasoline and diesel engines, and IVTs improves the performance and fuel economy of the vehicle.