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Frontier Developments (STU:5FD) Debt-to-EBITDA : -1.50 (As of Nov. 2023)


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What is Frontier Developments Debt-to-EBITDA?

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

Frontier Developments's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Nov. 2023 was €1.8 Mil. Frontier Developments's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Nov. 2023 was €20.0 Mil. Frontier Developments's annualized EBITDA for the quarter that ended in Nov. 2023 was €-14.6 Mil. Frontier Developments's annualized Debt-to-EBITDA for the quarter that ended in Nov. 2023 was -1.50.

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

STU:5FD' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -1.79   Med: 0.62   Max: 1.3
Current: -1.79

During the past 13 years, the highest Debt-to-EBITDA Ratio of Frontier Developments was 1.30. The lowest was -1.79. And the median was 0.62.

STU:5FD's Debt-to-EBITDA is ranked worse than
100% of 278 companies
in the Interactive Media industry
Industry Median: 0.82 vs STU:5FD: -1.79

Frontier Developments Debt-to-EBITDA Historical Data

The historical data trend for Frontier Developments'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.

Frontier Developments Debt-to-EBITDA Chart

Frontier Developments Annual Data
Trend May14 May15 May16 May17 May18 May19 May20 May21 May22 May23
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 0.75 0.58 0.62 1.30

Frontier Developments Semi-Annual Data
May14 Nov14 May15 Nov15 May16 Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23
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 0.76 0.53 0.52 -2.25 -1.50

Competitive Comparison of Frontier Developments's Debt-to-EBITDA

For the Electronic Gaming & Multimedia subindustry, Frontier Developments'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.


Frontier Developments's Debt-to-EBITDA Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Frontier Developments's Debt-to-EBITDA distribution charts can be found below:

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



Frontier Developments Debt-to-EBITDA Calculation

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

Frontier Developments's Debt-to-EBITDA for the fiscal year that ended in May. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(1.729 + 20.413) / 17.065
=1.30

Frontier Developments's annualized Debt-to-EBITDA for the quarter that ended in Nov. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(1.835 + 20.015) / -14.594
=-1.50

* 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 two times the quarterly (Nov. 2023) EBITDA data.


Frontier Developments  (STU:5FD) 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.


Frontier Developments Debt-to-EBITDA Related Terms

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


Frontier Developments (STU:5FD) Business Description

Traded in Other Exchanges
Address
Milton Road, 26 Science Park, Cambridge, GBR, CB4 0FP
Frontier Developments PLC develops video games for the interactive entertainment sector. It develops games using its Cobra proprietary cross-platform technology along with industry-standard software packages, allowing code and resources developed on PC to be compiled. Its games include RollerCoaster Tycoon 3, LostWinds, Kinectimals, Kinect Disneyland Adventures and Coaster Crazy games. It has only one reportable segment: Self-Published Work. Business operations are based in the UK and its North American subsidiary, Frontier Developments Inc. in the US. The company has one operating segment, being revenue from publishing games and revenue from other streams such as royalties and licensing.

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