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WDS (ASX:WDS) Debt-to-EBITDA : -0.63 (As of Dec. 2014)


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What is WDS Debt-to-EBITDA?

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

WDS's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2014 was A$2.6 Mil. WDS's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2014 was A$10.0 Mil. WDS's annualized EBITDA for the quarter that ended in Dec. 2014 was A$-20.0 Mil. WDS's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2014 was -0.63.

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

ASX:WDS's Debt-to-EBITDA is not ranked *
in the Construction industry.
Industry Median: 2.31
* Ranked among companies with meaningful Debt-to-EBITDA only.

WDS Debt-to-EBITDA Historical Data

The historical data trend for WDS'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.

WDS Debt-to-EBITDA Chart

WDS Annual Data
Trend Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only 1.88 0.19 0.40 0.22 0.18

WDS Semi-Annual Data
Jun06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14
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 0.76 0.21 0.11 0.19 -0.63

Competitive Comparison of WDS's Debt-to-EBITDA

For the Engineering & Construction subindustry, WDS'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.


WDS's Debt-to-EBITDA Distribution in the Construction Industry

For the Construction industry and Industrials sector, WDS's Debt-to-EBITDA distribution charts can be found below:

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



WDS Debt-to-EBITDA Calculation

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

WDS's Debt-to-EBITDA for the fiscal year that ended in Jun. 2014 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0 + 6.268) / 35.214
=0.18

WDS's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2014 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(2.554 + 10) / -20.006
=-0.63

* 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. 2014) EBITDA data.


WDS  (ASX:WDS) 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.


WDS Debt-to-EBITDA Related Terms

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


WDS (ASX:WDS) Business Description

Traded in Other Exchanges
N/A
Address
WDS Limited is an Australian provider of the development, design, engineering, construction, fabrication and maintenance related services to the cross-section of energy, mining and infrastructure sectors in Australia. The Company delivers services through two divisions, being Energy & Infrastructure and Mining.

WDS (ASX:WDS) Headlines

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