Nihon Knowledge Co (TSE:5252) Debt-to-EBITDA : 0.61 (As of Dec. 2023)

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What is Nihon Knowledge Co Debt-to-EBITDA?

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

Nihon Knowledge Co's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was 円196 Mil. Nihon Knowledge Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was 円58 Mil. Nihon Knowledge Co's annualized EBITDA for the quarter that ended in Dec. 2023 was 円416 Mil. Nihon Knowledge Co's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 0.61.

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 Nihon Knowledge Co's Debt-to-EBITDA or its related term are showing as below:

TSE:5252' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.11 Med: 1.92 Max: 3.94
Current: 1.26

During the past 3 years, the highest Debt-to-EBITDA Ratio of Nihon Knowledge Co was 3.94. The lowest was 1.11. And the median was 1.92.

TSE:5252's Debt-to-EBITDA is ranked worse than
54.14% of 1607 companies
in the Software industry
Industry Median: 1.06 vs TSE:5252: 1.26

Nihon Knowledge Co Debt-to-EBITDA Historical Data

The historical data trend for Nihon Knowledge Co'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.

Nihon Knowledge Co Debt-to-EBITDA Chart

Nihon Knowledge Co Annual Data

Trend

Mar21

Mar22

Mar23

Debt-to-EBITDA

3.94

1.92

1.11

Nihon Knowledge Co Quarterly Data
	Mar21	Mar22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial			N/A	-33.60	1.66	0.80	0.61

Competitive Comparison of Nihon Knowledge Co's Debt-to-EBITDA

For the Software - Application subindustry, Nihon Knowledge Co'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.

Nihon Knowledge Co's Debt-to-EBITDA Distribution in the Software Industry

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

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

Nihon Knowledge Co Debt-to-EBITDA Calculation

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

Nihon Knowledge Co's Debt-to-EBITDA for the fiscal year that ended in Mar. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(99.508	+	135.698)	/	212.77
	=	1.11

Nihon Knowledge Co's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(195.682	+	58.208)	/	415.896
	=	0.61

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. 2023) EBITDA data.

Nihon Knowledge Co (TSE:5252) 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.

Nihon Knowledge Co Debt-to-EBITDA Related Terms

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

Nihon Knowledge Co (TSE:5252) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Nihon Knowledge Co Ltd (TSE:5252) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

N/A

Address

JS Building 9th Floor, 3-19-5 Kotobuki, Taito-ku, Tokyo, JPN, 111-0042

Website

https://www.know-net.co.jp

Nihon Knowledge Co Ltd is a comprehensive ICT service company that provides quality and test technology, development, and security products with a thorough user orientation. The company's services include verification services, Development services, and consultation services. The verification services include Resolving software verification issues through a track record of numerous projects and accumulation of know-how. The development services include management systems for steel wholesalers and processing industries and others.

Nihon Knowledge Co (TSE:5252) Headlines

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