Sonic (SONC) Debt-to-EBITDA : 4.27 (As of Aug. 2018)

Sonic Debt-to-EBITDA Chart

Sonic Annual Data
	Trend	Aug09	Aug10	Aug11	Aug12	Aug13	Aug14	Aug15	Aug16	Aug17	Aug18
Debt-to-EBITDA		Get a 7-Day Free Trial					3.28	2.84	3.60	3.95	4.96

Sonic Quarterly Data
	Nov13	Feb14	May14	Aug14	Nov14	Feb15	May15	Aug15	Nov15	Feb16	May16	Aug16	Nov16	Feb17	May17	Aug17	Nov17	Feb18	May18	Aug18
Debt-to-EBITDA	Get a 7-Day Free Trial															3.36	5.32	7.66	3.82	4.27

Competitive Comparison of Sonic's Debt-to-EBITDA

For the Restaurants subindustry, Sonic'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.

Sonic's Debt-to-EBITDA Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Sonic's Debt-to-EBITDA distribution charts can be found below:

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

Sonic Debt-to-EBITDA Calculation

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

Sonic's Debt-to-EBITDA for the fiscal year that ended in Aug. 2018 is calculated as

Sonic's annualized Debt-to-EBITDA for the quarter that ended in Aug. 2018 is calculated as

* 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 (Aug. 2018) EBITDA data.

Sonic  (NAS:SONC) 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.

Sonic Debt-to-EBITDA Related Terms

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Sonic (SONC) Business Description