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RONN (RONN) Debt-to-EBITDA : 6.27 (As of Jun. 2005)


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What is RONN Debt-to-EBITDA?

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

RONN's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2005 was $5.54 Mil. RONN's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2005 was $1.53 Mil. RONN's annualized EBITDA for the quarter that ended in Jun. 2005 was $1.13 Mil. RONN's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2005 was 6.27.

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

RONN's Debt-to-EBITDA is not ranked *
in the Software industry.
Industry Median: 1.06
* Ranked among companies with meaningful Debt-to-EBITDA only.

RONN Debt-to-EBITDA Historical Data

The historical data trend for RONN'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.

RONN Debt-to-EBITDA Chart

RONN Annual Data
Trend Sep94 Sep95 Sep96 Sep97 Sep98 Sep99 Sep00 Sep01 Sep02 Sep03
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.62 3.92 4.90 66.02 -11.75

RONN Quarterly Data
Sep00 Dec00 Mar01 Jun01 Sep01 Dec01 Mar02 Jun02 Sep02 Dec02 Mar03 Jun03 Sep03 Dec03 Mar04 Jun04 Sep04 Dec04 Mar05 Jun05
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 -6.66 -5.32 -4.41 16.94 6.27

Competitive Comparison of RONN's Debt-to-EBITDA

For the Software - Application subindustry, RONN'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.


RONN's Debt-to-EBITDA Distribution in the Software Industry

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

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



RONN Debt-to-EBITDA Calculation

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

RONN's Debt-to-EBITDA for the fiscal year that ended in Sep. 2003 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(3.413 + 3.012) / -0.547
=-11.75

RONN's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2005 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(5.535 + 1.533) / 1.128
=6.27

* 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 (Jun. 2005) EBITDA data.


RONN  (OTCPK:RONN) 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.


RONN Debt-to-EBITDA Related Terms

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


RONN (RONN) Business Description

Traded in Other Exchanges
N/A
Address
11 N Water Street, Mobile, AL, USA, 36602
RONN Inc Formerly Lee Pharmaceuticals Inc is a developer of health and fitness related mobile applications to be used on PC and mobile devices. These applications will be offered through the Google Play Store and the Apple App Store. It is developing its mobile applications on behalf of a health care provider, health plan, or any HIPAA covered entities. The firm's Green Living Lifestyle Nutrition App encourage health and wellness through green options and alternative health strategies.

RONN (RONN) Headlines

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