RITT (RIT Technologies) Debt-to-EBITDA : -6.41 (As of Sep. 2015)

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What is RIT Technologies Debt-to-EBITDA?

RIT Technologies RITT Debt-to-EBITDA is -6.41 as of Sep. 2015.

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

RIT Technologies's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2015 was $0.00 Mil. RIT Technologies's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2015 was $3.00 Mil. RIT Technologies's annualized EBITDA for the quarter that ended in Sep. 2015 was $-0.47 Mil. RIT Technologies's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2015 was -6.41.

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

RITT's Debt-to-EBITDA is not ranked *
in the Hardware industry.
Industry Median: 1.715
* Ranked among companies with meaningful Debt-to-EBITDA only.

RIT Technologies  (OTCPK:RITT) 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.

RIT Technologies Debt-to-EBITDA Related Terms

RIT Technologies Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for RIT Technologies'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.

RIT Technologies Debt-to-EBITDA Chart

RIT Technologies Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.08 -0.05 -0.29 -0.22 -0.11

RIT Technologies Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
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 0.00 -0.08 22.06 5.28 -6.41

RITT vs OSAT, GTXO, DGDM: Debt-to-EBITDA Comparison

For the Communication Equipment subindustry, RIT Technologies'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.

RIT Technologies Debt-to-EBITDA vs Hardware Industry

For the Hardware industry and Technology sector, RIT Technologies's Debt-to-EBITDA distribution charts can be found below:

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


RIT Technologies Debt-to-EBITDA Calculation

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

RIT Technologies'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 + 1) / -9.151
=-0.11

RIT Technologies's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2015 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0 + 3) / -0.468
=-6.41

* 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. 2015) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of -6.41 mean?
RIT Technologies (RITT) has a Debt-to-EBITDA of -6.41 as of Sep. 2015. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on RIT Technologies.
Is RIT Technologies' Debt-to-EBITDA too high?
RIT Technologies' current Debt-to-EBITDA is -6.41.
How does RIT Technologies' Debt-to-EBITDA compare to OSAT and GTXO?
RIT Technologies' Debt-to-EBITDA of -6.41 can be compared against companies in the Hardware industry. The industry median Debt-to-EBITDA is 1.72. 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 Hardware company?
The median Debt-to-EBITDA among Hardware companies is 1.72, based on 1,796 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 RIT Technologies. For the Hardware industry, the median Debt-to-EBITDA is 1.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RIT Technologies's current Debt-to-EBITDA is -6.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RIT Technologies stock overvalued right now?
RIT Technologies (RITT) has a current Debt-to-EBITDA of -6.41. The current Debt-to-EBITDA is -6.41. 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 RIT Technologies (RITT), the current Debt-to-EBITDA is -6.41 as of Sep. 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.

RIT Technologies Business Description

Address 24 Raoul Wallenberg Street, Tel Aviv, ISR, 69719
RIT Technologies Ltd provides Intelligent Infrastructure Management solutions and develops indoor optical wireless technology solutions. The company's products include PatchView that provides security and network utilization for data centers, communication rooms and work space environments; and Beamcaster that provides IWON technology solutions mainly for open-space offices. Its Intelligent Infrastructure Management solutions are deployed in various organizations including data centers in the private sector, government agencies, financial institutions, airport authorities, healthcare and education institutions.