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Shopify Debt-to-EBITDA

: 1.68 As of Dec. 2020
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Debt-to-EBITDA measures a company's ability to pay off its debt.

Shopify's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2020 was $10 Mil. Shopify's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2020 was $903 Mil. Shopify's annualized EBITDA for the quarter that ended in Dec. 2020 was $542 Mil. Shopify's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2020 was 1.68.

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.

NYSE:SHOP' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -2.52   Med: -0.53   Max: 2.99
Current: 2.99
-2.52
2.99

During the past 9 years, the highest Debt-to-EBITDA Ratio of Shopify was 2.99. The lowest was -2.52. And the median was -0.53.

NYSE:SHOP's Debt-to-EBITDA is ranked lower than
73% of the 1290 Companies
in the Software industry.

( Industry Median: 1.31 vs. NYSE:SHOP: 2.99 )

Shopify Debt-to-EBITDA Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Shopify Annual Data
Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Debt-to-EBITDA Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.60 -0.64 -0.38 -2.52 2.86

Shopify Quarterly Data
Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20
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 -6.50 -0.60 1.89 1.10 1.68
Competitive Comparison
* 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.

Shopify Debt-to-EBITDA Distribution

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


Shopify Debt-to-EBITDA Calculation

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

Shopify's Debt-to-EBITDA for the fiscal year that ended in Dec. 2020 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(10.051 + 902.844) / 319.509
=2.86

Shopify's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2020 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(10.051 + 902.844) / 541.972
=1.68

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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. 2020) EBITDA data.

Shopify  (NYSE:SHOP) 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.

Shopify Debt-to-EBITDA Related Terms

Shopify Debt-to-EBITDA Headlines

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