Shanda Games (Shanda Games) Debt-to-EBITDA : 0.38 (As of Dec. 2014)

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What is Shanda Games Debt-to-EBITDA?

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

Shanda Games's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2014 was $0.0 Mil. Shanda Games's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2014 was $95.9 Mil. Shanda Games's annualized EBITDA for the quarter that ended in Dec. 2014 was $253.7 Mil. Shanda Games's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2014 was 0.38.

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 Shanda Games's Debt-to-EBITDA or its related term are showing as below:

GAME's Debt-to-EBITDA is not ranked ^*
in the Interactive Media industry.
Industry Median: 0.75
* Ranked among companies with meaningful Debt-to-EBITDA only.

Shanda Games Debt-to-EBITDA Historical Data

The historical data trend for Shanda Games'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.

Shanda Games Debt-to-EBITDA Chart

Shanda Games Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Debt-to-EBITDA

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0.40

0.60

0.82

0.38

Shanda Games Semi-Annual Data
	Dec07	Dec08	Dec09	Dec10	Dec11	Dec12	Dec13	Dec14
Debt-to-EBITDA	Get a 7-Day Free Trial			-	0.40	0.60	0.82	0.38

Competitive Comparison of Shanda Games's Debt-to-EBITDA

For the Electronic Gaming & Multimedia subindustry, Shanda Games'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.

Shanda Games's Debt-to-EBITDA Distribution in the Interactive Media Industry

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

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

Shanda Games Debt-to-EBITDA Calculation

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

Shanda Games's Debt-to-EBITDA for the fiscal year that ended in Dec. 2014 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(0	+	95.909)	/	253.676
	=	0.38

Shanda Games's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2014 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(0	+	95.909)	/	253.676
	=	0.38

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 one times the quarterly (Dec. 2014) EBITDA data.

Shanda Games (NAS:GAME) 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.

Shanda Games Debt-to-EBITDA Related Terms

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

Shanda Games (Shanda Games) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Shanda Games Ltd (NAS:GAME) » Definitions » Debt-to-EBITDA

Traded in Other Exchanges

N/A

Address

Website

http://www.shandagames.com

Shanda Games Ltd was incorporated in the Cayman Islands on June 12, 2008. The Company is an online game company in China in terms of the size, diversity of its game portfolio, game revenues and game player base. It completed its initial public offering on September 30, 2009. It develop and source a broad array of game content through multiple channels, including in-house development, licensing, investment, acquisition, joint development and joint operation. As of March 31, 2015, it operated 35 MMO games and 29 mobile games in China and certain overseas markets. The games operated by the Company are: Mir II, BNB, Woool, Legend of Immortals, Age of Wushu, among others. It competes with other online game developers and operators in China, including Tencent Holdings Limited, NetEase, Inc., Changyou.com Limited, Perfect World Co., Ltd., Giant Interactive, Kingsoft, KongZhong Corporation, NetDragon Websoft, Inc. and The9 Limited.