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SofTech (SofTech) Debt-to-EBITDA : 0.01 (As of Nov. 2016)


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What is SofTech Debt-to-EBITDA?

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

SofTech's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Nov. 2016 was $0.02 Mil. SofTech's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Nov. 2016 was $0.03 Mil. SofTech's annualized EBITDA for the quarter that ended in Nov. 2016 was $10.40 Mil. SofTech's annualized Debt-to-EBITDA for the quarter that ended in Nov. 2016 was 0.00.

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

SOFT's Debt-to-EBITDA is not ranked *
in the Software industry.
Industry Median: 1.06
* Ranked among companies with meaningful Debt-to-EBITDA only.

SofTech Debt-to-EBITDA Historical Data

The historical data trend for SofTech'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.

SofTech Debt-to-EBITDA Chart

SofTech Annual Data
Trend May06 May07 May08 May09 May11 May12 May13 May14 May15 May16
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.39 2.62 -5.17 -0.57 -1.92

SofTech Quarterly Data
Feb12 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16
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 8.62 -0.91 -1.84 -2.20 0.01

Competitive Comparison of SofTech's Debt-to-EBITDA

For the Software - Application subindustry, SofTech'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.


SofTech's Debt-to-EBITDA Distribution in the Software Industry

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

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



SofTech Debt-to-EBITDA Calculation

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

SofTech's Debt-to-EBITDA for the fiscal year that ended in May. 2016 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0.924 + 0.039) / -0.501
=-1.92

SofTech's annualized Debt-to-EBITDA for the quarter that ended in Nov. 2016 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0.024 + 0.027) / 10.396
=0.00

* 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 (Nov. 2016) EBITDA data.


SofTech  (OTCPK:SOFT) 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.


SofTech Debt-to-EBITDA Related Terms

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


SofTech (SofTech) Business Description

Traded in Other Exchanges
N/A
Address
650 Suffolk Street, Suite 415, Lowell, MA, USA, 01854
SofTech Inc is engaged in the development, marketing, distribution and support of computer software solutions that enable companies to manage the lifecycle of their products from conception through design and manufacture, to service and disposal. The company's service offerings include consulting, training and discrete engineering services. These solutions include software technology offerings for computer-aided design, and product data management and collaboration technologies. In addition, the company offers a technology platform that allows data exchange between various third-party technology offerings known as the company's connector offering.
Executives
Joseph Patrick Daly 10 percent owner 497 CIRCLE FREEWAY, CINCINNATI OH 45246
J Phillip Cooper director

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