RM (LSE:RM.) Debt-to-EBITDA : -1.19 (As of Nov. 2023)

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What is RM Debt-to-EBITDA?

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

RM's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Nov. 2023 was £2.2 Mil. RM's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Nov. 2023 was £67.9 Mil. RM's annualized EBITDA for the quarter that ended in Nov. 2023 was £-59.0 Mil. RM's annualized Debt-to-EBITDA for the quarter that ended in Nov. 2023 was -1.19.

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

LSE:RM.' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -6.08 Med: 0.32 Max: 3.8
Current: -2.58

During the past 13 years, the highest Debt-to-EBITDA Ratio of RM was 3.80. The lowest was -6.08. And the median was 0.32.

LSE:RM.'s Debt-to-EBITDA is ranked worse than
100% of 1601 companies
in the Software industry
Industry Median: 1.04 vs LSE:RM.: -2.58

RM Debt-to-EBITDA Historical Data

The historical data trend for RM'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.

RM Debt-to-EBITDA Chart

RM Annual Data

Trend

Nov14

Nov15

Nov16

Nov17

Nov18

Nov19

Nov20

Nov21

Nov22

Nov23

Debt-to-EBITDA

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0.73

0.43

3.80

-6.08

-2.58

RM Semi-Annual Data
	May14	Nov14	May15	Nov15	May16	Nov16	May17	Nov17	May18	Nov18	May19	Nov19	May20	Nov20	May21	Nov21	May22	Nov22	May23	Nov23
Debt-to-EBITDA	Get a 7-Day Free Trial															4.80	-9.52	-4.41	15.86	-1.19

Competitive Comparison of RM's Debt-to-EBITDA

For the Software - Application subindustry, RM'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.

RM's Debt-to-EBITDA Distribution in the Software Industry

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

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

RM Debt-to-EBITDA Calculation

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

RM's Debt-to-EBITDA for the fiscal year that ended in Nov. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(2.194	+	67.948)	/	-27.216
	=	-2.58

RM's annualized Debt-to-EBITDA for the quarter that ended in Nov. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(2.194	+	67.948)	/	-59.046
	=	-1.19

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 two times the quarterly (Nov. 2023) EBITDA data.

RM (LSE:RM.) 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.

RM Debt-to-EBITDA Related Terms

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

RM (LSE:RM.) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » RM PLC (LSE:RM.) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

RMl:UK RM.GB:UK RMP1:Germany

Address

142B Park Drive, Milton Park, Milton, Abingdon, Oxfordshire, GBR, OX14 4SE

Website

https://www.rmplc.com

RM PLC provides resources, software, and services to the education sector. The company is structured into three operating divisions: RM Resources, RM Assessment, and RM Technology. The RM Resources division consists of the operating business of TTS. TTS provides education resources used in schools through a predominantly direct marketing business model. The RM Assessment business provides IT software and services to exam boards and professional bodies to allow e-assessment. RM Technology division focuses on supplying IT software and services to schools and colleges. Its primary geographic markets are the United Kingdom, Europe, North America, Asia, the Middle East, and the Rest of the world.

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