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ZM (Zoom Communications) Debt-to-EBITDA : 0.06 (As of Apr. 2025)


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What is Zoom Communications Debt-to-EBITDA?

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

Zoom Communications's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Apr. 2025 was $26 Mil. Zoom Communications's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Apr. 2025 was $36 Mil. Zoom Communications's annualized EBITDA for the quarter that ended in Apr. 2025 was $1,108 Mil. Zoom Communications's annualized Debt-to-EBITDA for the quarter that ended in Apr. 2025 was 0.06.

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 Zoom Communications's Debt-to-EBITDA or its related term are showing as below:

ZM' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.06   Med: 0.15   Max: 2.49
Current: 0.06

During the past 9 years, the highest Debt-to-EBITDA Ratio of Zoom Communications was 2.49. The lowest was 0.06. And the median was 0.15.

ZM's Debt-to-EBITDA is ranked better than
91.96% of 1691 companies
in the Software industry
Industry Median: 1.09 vs ZM: 0.06

Zoom Communications Debt-to-EBITDA Historical Data

The historical data trend for Zoom Communications'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.

Zoom Communications Debt-to-EBITDA Chart

Zoom Communications Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only 0.15 0.10 0.29 0.12 0.07

Zoom Communications Quarterly Data
Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25
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 0.07 0.07 0.08 0.06 0.06

Competitive Comparison of Zoom Communications's Debt-to-EBITDA

For the Software - Application subindustry, Zoom Communications'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.


Zoom Communications's Debt-to-EBITDA Distribution in the Software Industry

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

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


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Zoom Communications Debt-to-EBITDA Calculation

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

Zoom Communications's Debt-to-EBITDA for the fiscal year that ended in Jan. 2025 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(27.026 + 37.406) / 935.927
=0.07

Zoom Communications's annualized Debt-to-EBITDA for the quarter that ended in Apr. 2025 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(25.583 + 35.894) / 1107.632
=0.06

* 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 (Apr. 2025) EBITDA data.


Zoom Communications  (NAS:ZM) 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.


Zoom Communications Debt-to-EBITDA Related Terms

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


Zoom Communications Business Description

Address
55 Almaden Boulevard, 6th Floor, San Jose, CA, USA, 95113
Zoom Video Communications provides a communications platform that connects people through video, voice, chat, and content sharing. The company's cloud-native platform enables face-to-face video and connects users across various devices and locations in a single meeting. Zoom, which was founded in 2011 and is headquartered in San Jose, California, serves companies of all sizes from all industries around the world.
Executives
Santiago Subotovsky director C/O EMERGENCE CAPITAL PARTNERS, 160 BOVENT ROAD SUITE 300, SAN MATEO CA 94402
Jonathan Chadwick director 3401 HILLVIEW AVENUE, PALO ALTO CA 94304
Velchamy Sankarlingam officer: Pres. of Engineering & Product C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Aparna Bawa officer: General Counsel C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Eric S. Yuan director, 10 percent owner, officer: Chief Executive Officer C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Shane Crehan officer: Chief Accounting Officer C/O EVENTBRITE, INC., 155 5TH STREET, 7TH FLOOR, SAN FRANCISCO CA 94103
Janet Napolitano director C/O VIR BIOTECHNOLOGY, INC., 499 ILLINOIS STREET, SUITE 500, SAN FRANCISCO CA 94158
Kelly Steckelberg officer: Chief Financial Officer C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Gregory Tomb officer: President 650 CASTRO ST, SUITE 400, MOUNTAIN VIEW CA 94041
Cindy L Hoots director C/O ZOOM VIDEO COMMUNICATIONS, INC, 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
William R Mcdermott director 2225 LAWSON LANE, SANTA CLARA CA 95054
Ryan Azus officer: Chief Revenue Officer C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Carl M. Eschenbach director, 10 percent owner C/O SEQUOIA CAPITAL, 2800 SAND HILL ROAD, SUITE 101, PALO ALTO CA 94025
Janine Pelosi officer: Chief Marketing Officer C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Kimberly Hammonds director 100 EAST DAVIE STREET, RALEIGH NC 27601