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Precision Auto Care (Precision Auto Care) Debt-to-EBITDA : 0.42 (As of Mar. 2017)


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What is Precision Auto Care Debt-to-EBITDA?

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

Precision Auto Care's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2017 was $0.42 Mil. Precision Auto Care's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2017 was $0.86 Mil. Precision Auto Care's annualized EBITDA for the quarter that ended in Mar. 2017 was $3.08 Mil. Precision Auto Care's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2017 was 0.42.

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 Precision Auto Care's Debt-to-EBITDA or its related term are showing as below:

PACI's Debt-to-EBITDA is not ranked *
in the Personal Services industry.
Industry Median: 3.41
* Ranked among companies with meaningful Debt-to-EBITDA only.

Precision Auto Care Debt-to-EBITDA Historical Data

The historical data trend for Precision Auto Care'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.

Precision Auto Care Debt-to-EBITDA Chart

Precision Auto Care Annual Data
Trend Jun02 Jun03 Jun04 Jun05 Jun06 Jun07 Jun08 Jun14 Jun15 Jun16
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.04 0.12 0.38 0.29 0.12

Precision Auto Care Quarterly Data
Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 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 0.50 0.09 0.47 1.21 0.42

Competitive Comparison of Precision Auto Care's Debt-to-EBITDA

For the Personal Services subindustry, Precision Auto Care'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.


Precision Auto Care's Debt-to-EBITDA Distribution in the Personal Services Industry

For the Personal Services industry and Consumer Cyclical sector, Precision Auto Care's Debt-to-EBITDA distribution charts can be found below:

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



Precision Auto Care Debt-to-EBITDA Calculation

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

Precision Auto Care's Debt-to-EBITDA for the fiscal year that ended in Jun. 2016 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0.321 + 0) / 2.7
=0.12

Precision Auto Care'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
=(0.419 + 0.864) / 3.084
=0.42

* 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. 2017) EBITDA data.


Precision Auto Care  (OTCPK:PACI) 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.


Precision Auto Care Debt-to-EBITDA Related Terms

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


Precision Auto Care (Precision Auto Care) Business Description

Traded in Other Exchanges
N/A
Address
Precision Auto Care Inc provides automotive maintenance services. The company's operations include Precision Tune Auto Care, an international franchisor of automotive service centers; Precision Auto Wash, an operator and franchisor of self-service car wash centers; and Precision Lube Express, an operator and franchisor of oil change and lube centers. Precision Auto Care also distributes automotive parts, equipment, and supplies.