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Convergys (Convergys) Debt-to-EBITDA : 0.82 (As of Jun. 2018)


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What is Convergys Debt-to-EBITDA?

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

Convergys's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2018 was $0 Mil. Convergys's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2018 was $178 Mil. Convergys's annualized EBITDA for the quarter that ended in Jun. 2018 was $217 Mil. Convergys's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2018 was 0.82.

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

CVG's Debt-to-EBITDA is not ranked *
in the Business Services industry.
Industry Median: 1.88
* Ranked among companies with meaningful Debt-to-EBITDA only.

Convergys Debt-to-EBITDA Historical Data

The historical data trend for Convergys'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.

Convergys Debt-to-EBITDA Chart

Convergys Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.54 1.39 1.11 1.02 0.99

Convergys Quarterly Data
Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
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 Premium Member Only 1.03 1.07 0.50 1.31 0.82

Competitive Comparison of Convergys's Debt-to-EBITDA

For the Specialty Business Services subindustry, Convergys'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.


Convergys's Debt-to-EBITDA Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Convergys's Debt-to-EBITDA distribution charts can be found below:

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



Convergys Debt-to-EBITDA Calculation

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

Convergys's Debt-to-EBITDA for the fiscal year that ended in Dec. 2017 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0.9 + 327.2) / 332.1
=0.99

Convergys's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2018 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0.4 + 177.9) / 217.2
=0.82

* 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 (Jun. 2018) EBITDA data.


Convergys  (NYSE:CVG) 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.


Convergys Debt-to-EBITDA Related Terms

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


Convergys (Convergys) Business Description

Traded in Other Exchanges
N/A
Address
Convergys is an operator of contact centers offering customer-management services. The services include sales, customer services, technical support, customer retention, collection services, and analytics. Convergys provides its services to a wide range of industries, such as utilities, travel and hospitality, automotive, communications and media, technology, financial services, healthcare, retail, and insurance. The revenue stream is North America, and the company relies on just a few contracts for a large part of its sales.
Executives
Andrea J. Ayers director, officer: President & CEO STANLEY BLACK & DECKER, IN., 1000 STANLEY DRIVE, NEW BRITAIN CT 06053
Thomas L Monahan director 2000 PENNSYLVANIA AVE NW, WASHINGTON DC 20006
Joan E Herman director
Jeffrey H Fox director ONE ALLIED DRIVE, LITTLE ROCK AR 72202
Ronald L Nelson director
Knowling Robert E Jr director C/O HEWLETT-PACKARD CO, 3000 HANOVER STREET, PALO ALTO CA 94304
Cheryl K Beebe director CORN PRODUCTS INTERNATIONAL INC, 5 WESTBROOK CORPORATE CENTER, WESTCHESTER IL 60154
Marjorie Mary Connelly officer: COO 2580 PALMER DR, KESWICK VA 22947
Richard F Wallman director HONEYWELL, 101 COLUMBIA ROAD, MORRISTOWN NJ 07962
John F Barrett director
Brian James Delaney officer: Chief Operating Officer C/O SERVICESOURCE INTERNATIONAL, INC., 760 MARKET STREET, #400, SAN FRANCISCO CA 94102
Barry Christine Timmins officer: Senior Vice President C/O ENDURANCE INTERNATIONAL GROUP 10 CORPORATE DRIVE BURLINGTON MA 01803
Philip A Odeen director N/A, N/A OH 45202
Earl C Shanks officer: CFO CONVERGYS CORPORATION, 201 EAST FOURTH STREET, CINCINNATI OH 45202
Robert A Lento officer: Senior Vice President

Convergys (Convergys) Headlines