VFRM (Veritas Farms) Debt-to-EBITDA : -1.34 (As of Sep. 2023)

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VFRM Veritas Farms Inc VFRM
12 GF Score
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What is Veritas Farms Debt-to-EBITDA?

Veritas Farms VFRM 12 Debt-to-EBITDA is -1.34 as of Sep. 2023. GuruFocus rates VFRM with a GF Score™ of 12/100.

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

Veritas Farms's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $0.30 Mil. Veritas Farms's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $3.64 Mil. Veritas Farms's annualized EBITDA for the quarter that ended in Sep. 2023 was $-2.93 Mil. Veritas Farms's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 was -1.34.

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 Veritas Farms's Debt-to-EBITDA or its related term are showing as below:

VFRM's Debt-to-EBITDA is not ranked *
in the Drug Manufacturers industry.
Industry Median: 1.68
* Ranked among companies with meaningful Debt-to-EBITDA only.

Veritas Farms  (OTCPK:VFRM) 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.


Veritas Farms Debt-to-EBITDA Related Terms


Veritas Farms Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Veritas Farms'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.

Veritas Farms Debt-to-EBITDA Chart

Veritas Farms Annual Data
Trend Jan16 Jan17 Dec18 Dec19 Dec20 Dec21 Dec22
Debt-to-EBITDA
Get a 7-Day Free Trial -0.14 -0.04 -0.33 -0.31 -1.09

Veritas Farms Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
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 -1.40 -0.57 -1.71 -0.73 -1.34

VFRM vs STMH, NXEN, ENDPQ: Debt-to-EBITDA Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Veritas Farms'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.


Veritas Farms Debt-to-EBITDA vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Veritas Farms's Debt-to-EBITDA distribution charts can be found below:

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


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Veritas Farms Inc VFRM
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
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Veritas Farms Debt-to-EBITDA Calculation

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

Veritas Farms's Debt-to-EBITDA for the fiscal year that ended in Dec. 2022 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0.353 + 4.233) / -4.199
=-1.09

Veritas Farms's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0.297 + 3.644) / -2.932
=-1.34

* 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 (Sep. 2023) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of -1.34 mean?
Veritas Farms (VFRM) has a Debt-to-EBITDA of -1.34 as of Sep. 2023. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Veritas Farms.
Is Veritas Farms' Debt-to-EBITDA too high?
Veritas Farms' current Debt-to-EBITDA is -1.34. Overall, Veritas Farms has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Veritas Farms' Debt-to-EBITDA compare to STMH and NXEN?
Veritas Farms' Debt-to-EBITDA of -1.34 can be compared against companies in the Drug Manufacturers industry. The industry median Debt-to-EBITDA is 1.68. 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 Drug Manufacturers company?
The median Debt-to-EBITDA among Drug Manufacturers companies is 1.68, based on 692 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 Veritas Farms. For the Drug Manufacturers industry, the median Debt-to-EBITDA is 1.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Veritas Farms's current Debt-to-EBITDA is -1.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Veritas Farms stock overvalued right now?
Veritas Farms (VFRM) has a current Debt-to-EBITDA of -1.34. The current Debt-to-EBITDA is -1.34. Veritas Farms' overall GF Score™ is 12/100. 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 Veritas Farms (VFRM), the current Debt-to-EBITDA is -1.34 as of Sep. 2023. 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.

Veritas Farms Business Description

Address 401 E. Las Olas Boulevard, Suite 1400, Fort Lauderdale, FL, USA, 33001
Veritas Farms Inc is engaged in producing natural rich-hemp products, using strict natural protocols and materials yielding broad spectrum phytocannabinoid rich hemp oils, distillates and isolates. Its products include Full Spectrum CBD Tincture, Full Spectrum CBD Salve, Full Spectrum CBD Capsules, Full Spectrum CBD Lotion and Others.
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Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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