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WaterPure International (WaterPure International) Debt-to-EBITDA : -0.77 (As of Mar. 2011)


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What is WaterPure International Debt-to-EBITDA?

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

WaterPure International's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2011 was $0.92 Mil. WaterPure International's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2011 was $0.00 Mil. WaterPure International's annualized EBITDA for the quarter that ended in Mar. 2011 was $-1.20 Mil. WaterPure International's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2011 was -0.77.

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 WaterPure International's Debt-to-EBITDA or its related term are showing as below:

WPUR's Debt-to-EBITDA is not ranked *
in the Industrial Products industry.
Industry Median: 1.71
* Ranked among companies with meaningful Debt-to-EBITDA only.

WaterPure International Debt-to-EBITDA Historical Data

The historical data trend for WaterPure International'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.

WaterPure International Debt-to-EBITDA Chart

WaterPure International Annual Data
Trend Jun06 Jun07 Jun08 Jun09 Jun10
Debt-to-EBITDA
- -0.09 -0.04 -0.26 -0.32

WaterPure International Quarterly Data
Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11
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 1.53 -0.15 -0.43 -0.68 -0.77

Competitive Comparison of WaterPure International's Debt-to-EBITDA

For the Specialty Industrial Machinery subindustry, WaterPure International'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.


WaterPure International's Debt-to-EBITDA Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, WaterPure International's Debt-to-EBITDA distribution charts can be found below:

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



WaterPure International Debt-to-EBITDA Calculation

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

WaterPure International's Debt-to-EBITDA for the fiscal year that ended in Jun. 2010 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0.312 + 0) / -0.983
=-0.32

WaterPure International's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2011 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0.916 + 0) / -1.196
=-0.77

* 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 (Mar. 2011) EBITDA data.


WaterPure International  (OTCPK:WPUR) 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.


WaterPure International Debt-to-EBITDA Related Terms

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


WaterPure International (WaterPure International) Business Description

Traded in Other Exchanges
N/A
Address
13155 Noel Road, Suite 900, Dallas, TX, USA, 75240
WaterPure International Inc is a development stage company engaged in manufacturing and marketing atmospheric water generators to the small office, home office, and consumer markets in the United States and internationally. Its products include a POE system, Controller, Piping system among others.