Magic Software Enterprises (Magic Software Enterprises) Debt-to-EBITDA

: 1.50 (As of Sep. 2023)

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

Magic Software Enterprises's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $34.7 Mil. Magic Software Enterprises's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $78.2 Mil. Magic Software Enterprises's annualized EBITDA for the quarter that ended in Sep. 2023 was $75.1 Mil. Magic Software Enterprises's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 was 1.50.

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 Magic Software Enterprises's Debt-to-EBITDA or its related term are showing as below:

MGIC' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.11 Med: 0.85 Max: 1.41
Current: 1.41

During the past 13 years, the highest Debt-to-EBITDA Ratio of Magic Software Enterprises was 1.41. The lowest was 0.11. And the median was 0.85.

MGIC's Debt-to-EBITDA is ranked worse than
57.18% of 1588 companies
in the Software industry
Industry Median: 1.03 vs MGIC: 1.41

Magic Software Enterprises Debt-to-EBITDA Historical Data

The historical data trend for Magic Software Enterprises'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.

Magic Software Enterprises Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Debt-to-EBITDA

0.62

0.80

0.95

0.90

0.97

Magic Software Enterprises Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Debt-to-EBITDA																1.01	0.97	1.18	1.43	1.50

Competitive Comparison

For the Information Technology Services subindustry, Magic Software Enterprises'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.

Magic Software Enterprises Debt-to-EBITDA Distribution

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

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

Magic Software Enterprises Debt-to-EBITDA Calculation

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

Magic Software Enterprises's Debt-to-EBITDA for the fiscal year that ended in Dec. 2022 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(25.346	+	54.694)	/	82.205
	=	0.97

Magic Software Enterprises's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(34.659	+	78.215)	/	75.108
	=	1.50

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 (Sep. 2023) EBITDA data.

Magic Software Enterprises (NAS:MGIC) 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.

Magic Software Enterprises Debt-to-EBITDA Related Terms

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Magic Software Enterprises (Magic Software Enterprises) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Magic Software Enterprises Ltd (NAS:MGIC) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

MGIC:Israel MGK:Germany MGK:Germany

Address

Yahadut Canada 1 Street, Or Yehuda, Or Yehuda, ISR, 6037501

Website

https://www.magicsoftware.com

Magic Software Enterprises Ltd is a software development company. The company's operating segment includes Software Services and IT Professional Services. It generates maximum revenue from the IT Professional Services segment. IT Professional Services segment offers advanced and flexible IT services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, communications services and solutions, as well as supplemental outsourcing services. Geographically, it derives a majority of revenue from the United States and also has a presence in Israel; Europe; Japan, and Other countries.