Candyking Holding AB (OSTO:CANDY) Debt-to-EBITDA : 7.10 (As of Mar. 2015)

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What is Candyking Holding AB Debt-to-EBITDA?

Candyking Holding AB OSTO:CANDY Debt-to-EBITDA is 7.10 as of Mar. 2015.

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

Candyking Holding AB's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2015 was kr25.20 Mil. Candyking Holding AB's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2015 was kr741.40 Mil. Candyking Holding AB's annualized EBITDA for the quarter that ended in Mar. 2015 was kr108.00 Mil. Candyking Holding AB's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2015 was 7.10.

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 Candyking Holding AB's Debt-to-EBITDA or its related term are showing as below:

OSTO:CANDY's Debt-to-EBITDA is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 2.075
* Ranked among companies with meaningful Debt-to-EBITDA only.

Candyking Holding AB  (OSTO:CANDY) 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.

Candyking Holding AB Debt-to-EBITDA Related Terms

Candyking Holding AB Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Candyking Holding AB'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.

Candyking Holding AB Debt-to-EBITDA Chart

Candyking Holding AB Annual Data
Trend Dec12 Dec13 Dec14
Debt-to-EBITDA
4.57 4.38 6.17

Candyking Holding AB Quarterly Data
Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only 9.57 9.89 5.98 5.17 7.10

Candyking Holding AB Debt-to-EBITDA Competitor Comparison

For the Confectioners subindustry, Candyking Holding AB'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.

Candyking Holding AB Debt-to-EBITDA vs Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Candyking Holding AB's Debt-to-EBITDA distribution charts can be found below:

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


Candyking Holding AB Debt-to-EBITDA Calculation

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

Candyking Holding AB's Debt-to-EBITDA for the fiscal year that ended in Dec. 2014 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0.511 + 740.591) / 120.071
=6.17

Candyking Holding AB's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2015 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(25.2 + 741.4) / 108
=7.10

* 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 four times the quarterly (Mar. 2015) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 7.10 mean?
Candyking Holding AB (OSTO:CANDY) has a Debt-to-EBITDA of 7.10 as of Mar. 2015. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Candyking Holding AB.
Is Candyking Holding AB's Debt-to-EBITDA too high?
Candyking Holding AB's current Debt-to-EBITDA is 7.10. The Consumer Packaged Goods industry median Debt-to-EBITDA is 2.08. Candyking Holding AB's value of 7.10 is 242.2% above this industry median.
How does Candyking Holding AB's Debt-to-EBITDA compare to competitors?
Candyking Holding AB's Debt-to-EBITDA of 7.10 can be compared against companies in the Consumer Packaged Goods industry. The industry median Debt-to-EBITDA is 2.08. Candyking Holding AB's value of 7.10 is 242.2% above this benchmark. 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 Consumer Packaged Goods company?
The median Debt-to-EBITDA among Consumer Packaged Goods companies is 2.08, based on 1,554 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. Candyking Holding AB's current Debt-to-EBITDA of 7.10 is 242.2% above the industry median. 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 Candyking Holding AB. For the Consumer Packaged Goods industry, the median Debt-to-EBITDA is 2.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Candyking Holding AB's current Debt-to-EBITDA is 7.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Candyking Holding AB stock overvalued right now?
Candyking Holding AB (OSTO:CANDY) has a current Debt-to-EBITDA of 7.10. The current Debt-to-EBITDA is 7.10 and 242.2% above the Consumer Packaged Goods industry median of 2.08. 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 Candyking Holding AB (OSTO:CANDY), the current Debt-to-EBITDA is 7.10 as of Mar. 2015. 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.

Candyking Holding AB Business Description

Comparable Companies OSTO:CLA B
Candyking Holding AB was founded in 1984. It is a supplier of pick & mix in the Nordic region, the UK and Ireland and has operations in Poland, the Czech Republic, Slovakia and Hungary. Candyking's confectionery concept and brands are Candyking, Karamellkungen, Premiyum and Candyking Favourites.