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Affirm Holdings (Affirm Holdings) Debt-to-EBITDA : -27.64 (As of Dec. 2023)


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What is Affirm Holdings Debt-to-EBITDA?

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

Affirm Holdings's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $0 Mil. Affirm Holdings's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $6,243 Mil. Affirm Holdings's annualized EBITDA for the quarter that ended in Dec. 2023 was $-226 Mil. Affirm Holdings's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was -27.64.

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

AFRM' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -19.39   Med: -6.88   Max: -5.35
Current: -19.39

During the past 5 years, the highest Debt-to-EBITDA Ratio of Affirm Holdings was -5.35. The lowest was -19.39. And the median was -6.88.

AFRM's Debt-to-EBITDA is ranked worse than
100% of 1599 companies
in the Software industry
Industry Median: 1.04 vs AFRM: -19.39

Affirm Holdings Debt-to-EBITDA Historical Data

The historical data trend for Affirm Holdings'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.

Affirm Holdings Debt-to-EBITDA Chart

Affirm Holdings Annual Data
Trend Jun19 Jun20 Jun21 Jun22 Jun23
Debt-to-EBITDA
-6.57 -13.02 -5.35 -6.88 -8.12

Affirm Holdings Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 -4.95 -11.16 -13.49 -25.06 -27.64

Competitive Comparison of Affirm Holdings's Debt-to-EBITDA

For the Software - Infrastructure subindustry, Affirm Holdings'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.


Affirm Holdings's Debt-to-EBITDA Distribution in the Software Industry

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

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



Affirm Holdings Debt-to-EBITDA Calculation

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

Affirm Holdings's Debt-to-EBITDA for the fiscal year that ended in Jun. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0 + 5451.006) / -671.598
=-8.12

Affirm Holdings's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0 + 6243.372) / -225.892
=-27.64

* 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 (Dec. 2023) EBITDA data.


Affirm Holdings  (NAS:AFRM) 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.


Affirm Holdings Debt-to-EBITDA Related Terms

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


Affirm Holdings (Affirm Holdings) Business Description

Traded in Other Exchanges
Address
650 California Street, San Francisco, CA, USA, 94108
Affirm Holdings Inc offers a platform for digital and mobile-first commerce. It comprises a point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app. The firm generates its revenue from merchant networks, and through virtual card networks among others. Geographically, it generates a majority share of its revenue from the United States.
Executives
Michael Linford officer: Chief Financial Officer 3000 HANOVER STREET, PALO ALTO CA 94304
Gic Private Ltd 10 percent owner 168 ROBINSON ROAD, #37-01 CAPITAL TOWER, SINGAPORE U0 068912
Rodriquez Manuel Sanchez director C/O FANNIE MAE, 1100 15TH STREET, NW, WASHINGTON DC 20005
Keith Rabois director C/O YELP! INC., 706 MISSION ST., SAN FRANCISCO CA 94103
Noel Bertram Watson director 400 1ST AVENUE, C/O TRIPADVISOR, INC., NEEDHAM MA 02494
Jenny J Ming director
James D White director C/O CAVA GROUP, INC., 202-400-2920 14 RIDGE SQUARE NW, SUITE 5, WASHINGTON DC 20016
Jacqueline D Reses director C/O SQUARE, INC., 1455 MARKET STREET #600, SAN FRANCISCO CA 94103
Katherine Adkins officer: Chief Legal Officer C/O AFFIRM HOLDINGS, INC., 650 CALIFORNIA STREET, SAN FRANCISCO CA 94108
Jeremy Liew director 2200 SAND HILL ROAD, MENLO PARK CA 94025
Jeremy Philips director C/O TRIPADVISOR, INC., 141 NEEDHAM STREET, NEWTON MA 02464
Siphelele Jiyane officer: Vice President, Controller C/O AFFIRM HOLDINGS, INC., 650 CALIFORNIA STREET, SAN FRANCISCO CA 94108
Libor Michalek officer: President, Technology C/O AFFIRM HOLDINGS, INC., 650 CALIFORNIA STREET, SAN FRANCISCO CA 94108
Silvija Martincevic officer: Chief Commercial Officer C/O AFFIRM HOLDINGS, INC., 650 CALIFORNIA STREET, SAN FRANCISCO CA 94108
Sandeep Bhandari officer: Chief Risk & Strategy Officer 71 STEVENSON STREET SUITE 300, SAN FRANCISCO CA 94105