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Veritas Farms (Veritas Farms) Debt-to-EBITDA : -1.34 (As of Sep. 2023)


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What is Veritas Farms Debt-to-EBITDA?

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

Veritas Farms's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $0.30 Mil. Veritas Farms's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $3.64 Mil. Veritas Farms's annualized EBITDA for the quarter that ended in Sep. 2023 was $-2.93 Mil. Veritas Farms's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 was -1.34.

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

VFRM' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -1.09   Med: -0.31   Max: -0.04
Current: -0.86

During the past 7 years, the highest Debt-to-EBITDA Ratio of Veritas Farms was -0.04. The lowest was -1.09. And the median was -0.31.

VFRM's Debt-to-EBITDA is ranked worse than
100% of 657 companies
in the Drug Manufacturers industry
Industry Median: 1.69 vs VFRM: -0.86

Veritas Farms Debt-to-EBITDA Historical Data

The historical data trend for Veritas Farms'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.

Veritas Farms Debt-to-EBITDA Chart

Veritas Farms Annual Data
Trend Jan16 Jan17 Dec18 Dec19 Dec20 Dec21 Dec22
Debt-to-EBITDA
Get a 7-Day Free Trial -0.14 -0.04 -0.33 -0.31 -1.09

Veritas Farms Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
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 -1.40 -0.57 -1.71 -0.73 -1.34

Competitive Comparison of Veritas Farms's Debt-to-EBITDA

For the Drug Manufacturers - Specialty & Generic subindustry, Veritas Farms'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.


Veritas Farms's Debt-to-EBITDA Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Veritas Farms's Debt-to-EBITDA distribution charts can be found below:

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



Veritas Farms Debt-to-EBITDA Calculation

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

Veritas Farms'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
=(0.353 + 4.233) / -4.199
=-1.09

Veritas Farms's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0.297 + 3.644) / -2.932
=-1.34

* 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 (Sep. 2023) EBITDA data.


Veritas Farms  (OTCPK:VFRM) 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.


Veritas Farms Debt-to-EBITDA Related Terms

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


Veritas Farms (Veritas Farms) Business Description

Traded in Other Exchanges
N/A
Address
401 E. Las Olas Boulevard, Suite 1400, Fort Lauderdale, FL, USA, 33001
Veritas Farms Inc is engaged in producing natural rich-hemp products, using strict natural protocols and materials yielding broad spectrum phytocannabinoid rich hemp oils, distillates and isolates. Its products include Full Spectrum CBD Tincture, Full Spectrum CBD Salve, Full Spectrum CBD Capsules, Full Spectrum CBD Lotion and Others.

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