WeCommerce Holdings (TSXV:WE) Debt-to-EBITDA : -1.47 (As of Dec. 2022)

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What is WeCommerce Holdings Debt-to-EBITDA?

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

WeCommerce Holdings's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2022 was C$4.78 Mil. WeCommerce Holdings's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2022 was C$42.15 Mil. WeCommerce Holdings's annualized EBITDA for the quarter that ended in Dec. 2022 was C$-31.94 Mil. WeCommerce Holdings's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2022 was -1.47.

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

TSXV:WE's Debt-to-EBITDA is not ranked ^*
in the Software industry.
Industry Median: 1.04
* Ranked among companies with meaningful Debt-to-EBITDA only.

WeCommerce Holdings Debt-to-EBITDA Historical Data

The historical data trend for WeCommerce Holdings'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.

WeCommerce Holdings Debt-to-EBITDA Chart

WeCommerce Holdings Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Debt-to-EBITDA

3.72

593.56

4.78

-6.99

WeCommerce Holdings Quarterly Data
	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22
Debt-to-EBITDA	Get a 7-Day Free Trial									1.83	3.28	-15.61	-5.16	-1.47

Competitive Comparison of WeCommerce Holdings's Debt-to-EBITDA

For the Software - Application subindustry, WeCommerce Holdings'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.

WeCommerce Holdings's Debt-to-EBITDA Distribution in the Software Industry

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

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

WeCommerce Holdings Debt-to-EBITDA Calculation

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

WeCommerce Holdings'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
	=	(4.781	+	42.154)	/	-6.714
	=	-6.99

WeCommerce Holdings's annualized Debt-to-EBITDA for the quarter 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
	=	(4.781	+	42.154)	/	-31.944
	=	-1.47

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. 2022) EBITDA data.

WeCommerce Holdings (TSXV:WE) 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.

WeCommerce Holdings Debt-to-EBITDA Related Terms

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

WeCommerce Holdings (TSXV:WE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » WeCommerce Holdings Ltd (TSXV:WE) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

N/A

Address

329 Howe Street, PMB 2066, Victoria, BC, CAN, V6C 3N2

Website

https://www.wecommerce.co

WeCommerce Holdings Ltd is a holding company that owns a family of companies and brands in the Shopify partner ecosystem, including Pixel Union, Out of the Sandbox, Yopify, SuppleApps, Rehash, Stamped and Foursixty. The company's primary focus is to build, grow and acquire businesses that serve the Shopify Partner ecosystem. These businesses consist largely of Software as a Service, Digital Goods and Services businesses. Generally, these businesses build Apps and Themes and run Agencies that support Shopify merchants. The company targets businesses within the Shopify ecosystem due to its confidence in the Shopify platform, the fragmented nature of the ecosystem and the attractive economics that the businesses generally exhibit. Its segments include Themes, Apps and Agency.

WeCommerce Holdings (TSXV:WE) Headlines

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