Switch to:
Versum Materials Inc  (NYSE:VSM) Debt-to-EBITDA : 2.55 As of Mar. 2019

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

Versum Materials Inc's Current Portion of Long-Term Debt for the quarter that ended in Mar. 2019 was $6 Mil. Versum Materials Inc's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2019 was $972 Mil. Versum Materials Inc's annualized EBITDA for the quarter that ended in Mar. 2019 was $384 Mil. Versum Materials Inc's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2019 was 2.55.

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:VSM' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.02   Max: 3.05
Current: 2.29

0.02
3.05

During the past 6 years, the highest Debt-to-EBITDA Ratio of Versum Materials Inc was 3.05. The lowest was 0.02. And the median was 2.58.

NYSE:VSM's Debt-to-EBITDA is ranked lower than
58% of the 913 Companies
in the Global industry.

( Industry Median: 2.12 vs. NYSE:VSM: 2.29 )

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.

Versum Materials Inc Annual Data

Sep13 Sep14 Sep15 Sep16 Sep17 Sep18
Debt-to-EBITDA Premium Member Only 0.02 0.00 3.05 2.84 2.32

Versum Materials Inc Quarterly Data

Sep13 Sep14 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
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 2.41 2.23 2.18 2.24 2.55

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.


Versum Materials Inc Distribution

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



Calculation

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

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

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

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

Debt-to-EBITDA=Total Debt / EBITDA
=(Current Portion of Long-Term Debt + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(6.1 + 972.2) / 384.4
=2.55

* 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 (Mar. 2019) EBITDA data.


Explanation

In the calculation of Debt-to-EBITDA, we use the total of Current Portion of Long-Term Debt 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.


Related Terms


Headlines

No Headline

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK