GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Gamma Communications PLC (LSE:GAMA) » Definitions » Debt-to-EBITDA

Gamma Communications (LSE:GAMA) Debt-to-EBITDA : 0.13 (As of Dec. 2023)


View and export this data going back to 2014. Start your Free Trial

What is Gamma Communications Debt-to-EBITDA?

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

Gamma Communications's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was £3.3 Mil. Gamma Communications's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was £8.4 Mil. Gamma Communications's annualized EBITDA for the quarter that ended in Dec. 2023 was £91.0 Mil. Gamma Communications's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 0.13.

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

LSE:GAMA' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.09   Med: 0.15   Max: 0.19
Current: 0.11

During the past 13 years, the highest Debt-to-EBITDA Ratio of Gamma Communications was 0.19. The lowest was 0.09. And the median was 0.15.

LSE:GAMA's Debt-to-EBITDA is ranked better than
97.13% of 314 companies
in the Telecommunication Services industry
Industry Median: 2.16 vs LSE:GAMA: 0.11

Gamma Communications Debt-to-EBITDA Historical Data

The historical data trend for Gamma 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.

Gamma Communications Debt-to-EBITDA Chart

Gamma Communications Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.18 0.19 0.16 0.14 0.11

Gamma Communications Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 0.16 0.14 0.16 0.11 0.13

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

For the Telecom Services subindustry, Gamma 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.


Gamma Communications's Debt-to-EBITDA Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Gamma Communications's Debt-to-EBITDA distribution charts can be found below:

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



Gamma Communications Debt-to-EBITDA Calculation

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

Gamma Communications's Debt-to-EBITDA for the fiscal year that ended in Dec. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(3.3 + 8.4) / 103.7
=0.11

Gamma Communications's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(3.3 + 8.4) / 91
=0.13

* 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 two times the quarterly (Dec. 2023) EBITDA data.


Gamma Communications  (LSE:GAMA) 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.


Gamma Communications Debt-to-EBITDA Related Terms

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


Gamma Communications (LSE:GAMA) Business Description

Traded in Other Exchanges
Address
Kings Road West, Kings House, Newbury, Berkshire, GBR, RG14 5BY
Gamma Communications PLC is a supplier of Unified Communications as a Service (UCaaS) in the United Kingdom and Dutch markets, supplying communication solutions directly and via its network of trusted channel partners. The company's product portfolio includes Unified Communications, SIP Trunking, Call Management, Mobile, and Connectivity. Its segments consist of UK Indirect, which sells products to channel partners; UK Direct which sells products to end-users in the SME, enterprise, and public sectors together with an associated service wrap; and European segment consists of sales made in Europe; and Central functions.

Gamma Communications (LSE:GAMA) Headlines

No Headlines