SLCO (Sovereign Lithium) Debt-to-EBITDA : 0.00 (As of Dec. 2013)

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What is Sovereign Lithium Debt-to-EBITDA?

Sovereign Lithium SLCO Debt-to-EBITDA is 0.00 as of Dec. 2013.

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

Sovereign Lithium's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2013 was $0.00 Mil. Sovereign Lithium's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2013 was $0.00 Mil. Sovereign Lithium's annualized EBITDA for the quarter that ended in Dec. 2013 was $-0.19 Mil. Sovereign Lithium's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2013 was 0.00.

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

SLCO's Debt-to-EBITDA is not ranked *
in the Metals & Mining industry.
Industry Median: 1.2
* Ranked among companies with meaningful Debt-to-EBITDA only.

Sovereign Lithium  (OTCPK:SLCO) 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.


Sovereign Lithium Debt-to-EBITDA Related Terms


Sovereign Lithium Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Sovereign Lithium'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.

Sovereign Lithium Debt-to-EBITDA Chart

Sovereign Lithium Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Debt-to-EBITDA
Get a 7-Day Free Trial 0.00 0.00 N/A 0.00 0.00

Sovereign Lithium Quarterly Data
Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13
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 0.00 0.00 0.00 0.00

Sovereign Lithium Debt-to-EBITDA Competitor Comparison

For the Other Industrial Metals & Mining subindustry, Sovereign Lithium'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.


Sovereign Lithium Debt-to-EBITDA vs Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Sovereign Lithium's Debt-to-EBITDA distribution charts can be found below:

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



Sovereign Lithium Debt-to-EBITDA Calculation

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

Sovereign Lithium'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
=(0 + 0) / -0.576
=0.00

Sovereign Lithium's annualized Debt-to-EBITDA for the quarter 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
=(0 + 0) / -0.192
=0.00

* 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 (Dec. 2013) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 0.00 mean?
Sovereign Lithium (SLCO) has a Debt-to-EBITDA of 0.00 as of Dec. 2013. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Sovereign Lithium.
Is Sovereign Lithium's Debt-to-EBITDA too high?
Sovereign Lithium's current Debt-to-EBITDA is 0.00.
How does Sovereign Lithium's Debt-to-EBITDA compare to competitors?
Sovereign Lithium's Debt-to-EBITDA of 0.00 can be compared against companies in the Metals & Mining industry. The industry median Debt-to-EBITDA is 1.20. 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 Metals & Mining company?
The median Debt-to-EBITDA among Metals & Mining companies is 1.20, based on 596 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 Sovereign Lithium. For the Metals & Mining industry, the median Debt-to-EBITDA is 1.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sovereign Lithium's current Debt-to-EBITDA is 0.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sovereign Lithium stock overvalued right now?
Sovereign Lithium (SLCO) has a current Debt-to-EBITDA of 0.00. The current Debt-to-EBITDA is 0.00. 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 Sovereign Lithium (SLCO), the current Debt-to-EBITDA is 0.00 as of Dec. 2013. 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.

Sovereign Lithium Business Description

Address 999 18th Street, Suite 3000, Denver, CO, USA, 80202
Sovereign Lithium Inc is a exploration stage mineral exploration and development company.