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Transcom WorldWide (OSTO:TWW SDB A) Debt-to-EBITDA : 3.18 (As of Sep. 2014)


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What is Transcom WorldWide Debt-to-EBITDA?

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

Transcom WorldWide's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2014 was kr123 Mil. Transcom WorldWide's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2014 was kr493 Mil. Transcom WorldWide's annualized EBITDA for the quarter that ended in Sep. 2014 was kr194 Mil. Transcom WorldWide's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2014 was 3.18.

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

OSTO:TWW SDB A's Debt-to-EBITDA is not ranked *
in the Business Services industry.
Industry Median: 1.81
* Ranked among companies with meaningful Debt-to-EBITDA only.

Transcom WorldWide Debt-to-EBITDA Historical Data

The historical data trend for Transcom WorldWide'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.

Transcom WorldWide Debt-to-EBITDA Chart

Transcom WorldWide Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.73 10.61 -4.48 -12.32 25.68

Transcom WorldWide Quarterly Data
Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14
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 5.19 -1.25 2.92 15.28 3.18

Competitive Comparison of Transcom WorldWide's Debt-to-EBITDA

For the Specialty Business Services subindustry, Transcom WorldWide'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.


Transcom WorldWide's Debt-to-EBITDA Distribution in the Business Services Industry

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

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


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Transcom WorldWide Debt-to-EBITDA Calculation

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

Transcom WorldWide'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
=(845.013 + 0.143) / 32.915
=25.68

Transcom WorldWide's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2014 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(123.363 + 492.655) / 193.764
=3.18

* 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 (Sep. 2014) EBITDA data.


Transcom WorldWide  (OSTO:TWW SDB A) 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.


Transcom WorldWide Debt-to-EBITDA Related Terms

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


Transcom WorldWide Business Description

Traded in Other Exchanges
N/A
Address
Transcom WorldWide SA was established in 1995. Together with its subsidiaries provide multi-language customer relationship management products and services ('CRM') and credit management services ('CMS'), including customer help lines and other telephone-based marketing and customer service programs ('teleservices') to clients in customer-intensive industries. The Group has two primary sources of revenues being its CRM (Customer Relationship Management) and its CMS (Credit Management Services) businesses. In relation to its CRM business, revenue mainly arise from call services operations. In relation to its CMS business, revenue mainly arise from fees and commissions generated from the collection of receivables on behalf of customers. The Company's operating segments are North Europe CRM (Denmark, Netherlands, Norway, Sweden, Estonia, Latvia and Lithuania), Central & South Europe CRM (Austria, Belgium, Croatia, Germany, Hungary, Italy, luxembourg, Poland, Slovakia, Switzerland, and Tunisia), Iberia & latam CRM (Chile, Peru, Portugal and Spain), North America & Asia Pacific CRM (Canada, the Philippines, USA, the United Kingdom and Australia), and CMS (Austria, the Czech Republic, the United Kingdom, Poland, Denmark, Norway and Sweden).

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