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Bandwidth (Bandwidth) Debt-to-EBITDA

: 8.50 (As of Dec. 2023)
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Debt-to-EBITDA measures a company's ability to pay off its debt.

Bandwidth's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $5.5 Mil. Bandwidth's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $639.1 Mil. Bandwidth's annualized EBITDA for the quarter that ended in Dec. 2023 was $75.8 Mil. Bandwidth's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 8.50.

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

BAND' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -6.37   Med: 8.8   Max: 37.62
Current: 15.92

During the past 9 years, the highest Debt-to-EBITDA Ratio of Bandwidth was 37.62. The lowest was -6.37. And the median was 8.80.

BAND's Debt-to-EBITDA is ranked worse than
95.78% of 1588 companies
in the Software industry
Industry Median: 1.03 vs BAND: 15.92

Bandwidth Debt-to-EBITDA Historical Data

The historical data trend for Bandwidth'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.

Bandwidth Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Debt-to-EBITDA
Premium Member Only Premium Member Only Premium Member Only Premium Member Only -6.37 37.62 14.71 8.80 27.76

Bandwidth Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Debt-to-EBITDA 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 Premium Member Only Premium Member Only Premium Member Only 2.66 10.38 16.69 33.29 8.50

Competitive Comparison

For the Software - Infrastructure subindustry, Bandwidth'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.


Bandwidth Debt-to-EBITDA Distribution

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

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



Bandwidth Debt-to-EBITDA Calculation

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

Bandwidth's Debt-to-EBITDA for the fiscal year 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
=(5.463 + 639.074) / 23.222
=27.76

Bandwidth'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
=(5.463 + 639.074) / 75.828
=8.50

* 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.


Bandwidth  (NAS:BAND) 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.


Bandwidth Debt-to-EBITDA Related Terms

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


Bandwidth (Bandwidth) Business Description

Traded in Other Exchanges
Address
900 Main Campus Drive, Raleigh, NC, USA, 27606
Bandwidth Inc is cloud-based communications platform-as-a-service (CPaaS) provider that enables enterprises to create, scale and operate voice or messaging communications services across any mobile application or connected device. Company earns revenue through the sale of communications services offered through Application Programming Interface software solutions to large as well as small and medium-sized business, customers and is generally derived from usage and service fees. Usage revenue includes voice communication (driven by inbound and outbound minutes and toll-free minutes) and messaging communication (driven by the number of messages) that traverse the platform and network. Service fees include the provision and management of phone numbers and emergency services access.
Executives
Richard Brandon Asbill officer: General Counsel C/O BANDWIDTH INC., 900 MAIN CAMPUS DRIVE, RALEIGH NC 27606
Devin M Krupka officer: Controller, PAO C/O BANDWIDTH INC., 2230 BANDMATE WAY, RALEIGH NC 27607
Daryl Raiford officer: Chief Financial Officer C/O BANDWIDTH INC., 900 MAIN CAMPUS DRIVE, RALEIGH NC 27606
Kade Ross officer: Chief Information Officer C/O BANDWIDTH INC., 2230 BANDMATE WAY, RALEIGH NC 27607
David A. Morken director, 10 percent owner, officer: Chairman & CEO C/O BANDWIDTH INC., 2230 BANDMATE WAY, RALEIGH NC 27607
Rebecca Bottorff officer: Chief People Officer C/O BANDWIDTH INC., 2230 BANDMATE WAY, RALEIGH NC 27607
Anthony Bartolo officer: Chief Operating Officer C/O BANDWIDTH INC., 900 MAIN CAMPUS DRIVE, RALEIGH NC 27606
Lukas M. Roush director C/O BANDWIDTH INC., 2230 BANDMATE WAY, RALEIGH NC 27607
Marina C. Carreker officer: President C/O BANDWIDTH INC., 900 MAIN CAMPUS DRIVE, RALEIGH NC 27606
Douglas A Suriano director C/O BANDWIDTH INC., 2230 BANDMATE WAY, RALEIGH NC 27607
Brian D. Bailey director, 10 percent owner C/O CARMICHAEL INVESTMENT PARTNERS LLC, 4725 PIEDMONT ROW DRIVE, SUITE 210, CHARLOTTE NC 28210
Gabriela Gonzalez officer: Sr. VP Finance, Controller 1801 VARSITY DRIVE, RALEIGH NC 27606
John C. Murdock director, 10 percent owner, officer: President C/O BANDWIDTH INC., 2230 BANDMATE WAY, RALEIGH NC 27607
Jeffrey A. Hoffman officer: Chief Financial Officer C/O BANDWIDTH INC., 900 MAIN CAMPUS DRIVE, RALEIGH NC 27606
W. Christopher Matton officer: General Counsel C/O BANDWIDTH INC., 900 MAIN CAMPUS DRIVE, RALEIGH NC 27606