AZ Electronic Materials (LSE:ZEMA) Debt-to-EBITDA : 1.67 (As of Dec. 2013)

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What is AZ Electronic Materials Debt-to-EBITDA?

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

AZ Electronic Materials's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2013 was £25.86 Mil. AZ Electronic Materials's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2013 was £194.65 Mil. AZ Electronic Materials's annualized EBITDA for the quarter that ended in Dec. 2013 was £132.25 Mil. AZ Electronic Materials's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2013 was 1.67.

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 AZ Electronic Materials's Debt-to-EBITDA or its related term are showing as below:

LSE:ZEMA's Debt-to-EBITDA is not ranked ^*
in the Chemicals industry.
Industry Median: 2.35
* Ranked among companies with meaningful Debt-to-EBITDA only.

AZ Electronic Materials Debt-to-EBITDA Historical Data

The historical data trend for AZ Electronic Materials'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.

AZ Electronic Materials Debt-to-EBITDA Chart

AZ Electronic Materials Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Debt-to-EBITDA

-14.30

7.74

1.87

1.56

1.66

AZ Electronic Materials Semi-Annual Data
	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13
Debt-to-EBITDA	Get a 7-Day Free Trial			1.87	1.97	1.49	1.82	1.67

Competitive Comparison of AZ Electronic Materials's Debt-to-EBITDA

For the Specialty Chemicals subindustry, AZ Electronic Materials'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.

AZ Electronic Materials's Debt-to-EBITDA Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, AZ Electronic Materials's Debt-to-EBITDA distribution charts can be found below:

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

AZ Electronic Materials Debt-to-EBITDA Calculation

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

AZ Electronic Materials's Debt-to-EBITDA for the fiscal year that ended in Dec. 2013 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(25.864	+	194.651)	/	132.553
	=	1.66

AZ Electronic Materials's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2013 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(25.864	+	194.651)	/	132.248
	=	1.67

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. 2013) EBITDA data.

AZ Electronic Materials (LSE:ZEMA) 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.

AZ Electronic Materials Debt-to-EBITDA Related Terms

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

AZ Electronic Materials (LSE:ZEMA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » AZ Electronic Materials SA (LSE:ZEMA) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.azem.com

AZ Electronic Materials SA is a Luxembourg- based company engaged in producing and supplying specialty chemicals. It focuses on three business areas Integrated Circuits which involves dielectrics, underlayers, yield enhancers, CMP slurries and pattern enhancers, Display Materials and AZ products such as specialty chemicals and materials used in integrated circuits and devise as well as flat panel displays and photolithographic printing.

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