AR Advanced Technology (TSE:5578) Debt-to-EBITDA : 2.81 (As of Feb. 2024)

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What is AR Advanced Technology Debt-to-EBITDA?

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

AR Advanced Technology's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2024 was 円880 Mil. AR Advanced Technology's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2024 was 円0 Mil. AR Advanced Technology's annualized EBITDA for the quarter that ended in Feb. 2024 was 円313 Mil. AR Advanced Technology's annualized Debt-to-EBITDA for the quarter that ended in Feb. 2024 was 2.81.

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 AR Advanced Technology's Debt-to-EBITDA or its related term are showing as below:

TSE:5578' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.59 Med: 0.87 Max: 1.86
Current: 1.86

During the past 3 years, the highest Debt-to-EBITDA Ratio of AR Advanced Technology was 1.86. The lowest was 0.59. And the median was 0.87.

TSE:5578's Debt-to-EBITDA is ranked worse than
63.73% of 1613 companies
in the Software industry
Industry Median: 1.06 vs TSE:5578: 1.86

AR Advanced Technology Debt-to-EBITDA Historical Data

The historical data trend for AR Advanced Technology'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.

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AR Advanced Technology Debt-to-EBITDA Chart

AR Advanced Technology Annual Data

Trend

Aug21

Aug22

Aug23

Debt-to-EBITDA

0.87

0.59

1.47

AR Advanced Technology Quarterly Data
	Aug21	Aug22	Feb23	May23	Aug23	Nov23	Feb24
Debt-to-EBITDA	Get a 7-Day Free Trial			N/A	1.48	2.21	1.49	2.81

Competitive Comparison of AR Advanced Technology's Debt-to-EBITDA

For the Information Technology Services subindustry, AR Advanced Technology'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.

AR Advanced Technology's Debt-to-EBITDA Distribution in the Software Industry

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

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

AR Advanced Technology Debt-to-EBITDA Calculation

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

AR Advanced Technology's Debt-to-EBITDA for the fiscal year that ended in Aug. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(880	+	0)	/	599.38
	=	1.47

AR Advanced Technology's annualized Debt-to-EBITDA for the quarter that ended in Feb. 2024 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(880	+	0)	/	313.068
	=	2.81

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 (Feb. 2024) EBITDA data.

AR Advanced Technology (TSE:5578) 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.

AR Advanced Technology Debt-to-EBITDA Related Terms

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

AR Advanced Technology (TSE:5578) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » AR Advanced Technology Inc (TSE:5578) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

N/A

Address

1-14-16 Shibuya, Shibuya Nomura Securities Building 8th floor, Shibuya-ku, Tokyo, JPN, 150-0002

Website

https://www.ari-jp.com

AR Advanced Technology Inc is engaged in the DX solution business utilizing cloud technology, data analysis, and AI. It provides a comprehensive service that goes beyond simple system introduction. Its products and services include Loogue faq, an AI chatbot that is specialized in employee inquiries; Zidoma data which may be useful to reduce fileserver operating costs; and Mieta a cloud contact center analysis management service.

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