Versum Materials (Versum Materials) Debt-to-EBITDA : -7.42 (As of Jun. 2019)

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What is Versum Materials Debt-to-EBITDA?

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

Versum Materials's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2019 was $6 Mil. Versum Materials's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2019 was $971 Mil. Versum Materials's annualized EBITDA for the quarter that ended in Jun. 2019 was $-132 Mil. Versum Materials's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2019 was -7.42.

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

VSM's Debt-to-EBITDA is not ranked ^*
in the Chemicals industry.
Industry Median: 2.2
* Ranked among companies with meaningful Debt-to-EBITDA only.

Versum Materials Debt-to-EBITDA Historical Data

The historical data trend for Versum Materials'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.

Versum Materials Debt-to-EBITDA Chart

Versum Materials Annual Data

Trend

Sep13

Sep14

Sep15

Sep16

Sep17

Sep18

Debt-to-EBITDA

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0.02

3.05

2.84

2.32

Versum Materials Quarterly Data
	Sep13	Sep14	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19
Debt-to-EBITDA	Get a 7-Day Free Trial														2.23	2.18	2.24	2.55	-7.42

Competitive Comparison of Versum Materials's Debt-to-EBITDA

For the Chemicals subindustry, Versum Materials'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.

Versum Materials's Debt-to-EBITDA Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Versum Materials's Debt-to-EBITDA distribution charts can be found below:

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

Versum Materials Debt-to-EBITDA Calculation

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

Versum Materials's Debt-to-EBITDA for the fiscal year that ended in Sep. 2018 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(5.8	+	974.2)	/	422.7
	=	2.32

Versum Materials's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2019 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(5.8	+	971.2)	/	-131.6
	=	-7.42

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. 2019) EBITDA data.

Versum Materials (NYSE:VSM) 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.

Versum Materials Debt-to-EBITDA Related Terms

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

Versum Materials (Versum Materials) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Versum Materials Inc (NYSE:VSM) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

N/A

Address

8555 South River Parkway, Tempe, AZ, USA, 85284

Website

https://www.versummaterials.com

Versum Materials is a leading global provider of electronic materials for the integrated circuit and flat-panel display markets. It supplies specialty chemicals and materials, high-purity specialty gases, proprietary delivery systems, and related services. The semiconductor industry accounts for 85% of sales. Versum generated fiscal 2017 revenue and adjusted EBIT of $1,127 million and $326 million, respectively. Versum employs almost 2,000 and serves 250 customers from its global network of 14 production sites and six R&D facilities.

Executives

Alejandro Daniel Wolff	director	ALBEMARLE CORP., 451 FLORIDA ST, BATON ROUGE LA 70801
Seifi Ghasemi	director	100 OVERLOOK CENTER, PRINCETON NJ 08540
Guillermo Novo	director, officer: President and CEO	AIR PRODUCTS AND CHEMICALS, INC., 7201 HAMILTON BOULEVARD, ALLENTOWN PA 18195
Susan C Schnabel	director	C/O CREDIT SUISSE FIRST BOSTON, 11 MADISON AVE, NEW YORK NY 10010
Yi Hyon Paik	director	ROHM AND HAAS COMPANY, 100 INDEPENDENCE MALL WEST, PHILADELPHIA PA 19106
Jacques M Croisetiere	director	C/O MORTON INTERNATIONAL INC, 100 N RIVERSIDE PLZ, CHICAGO IL 60606