Sprint (Sprint) Debt-to-EBITDA : 4.27 (As of Dec. 2019)

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What is Sprint Debt-to-EBITDA?

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

Sprint's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2019 was $5,740 Mil. Sprint's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2019 was $38,930 Mil. Sprint's annualized EBITDA for the quarter that ended in Dec. 2019 was $10,464 Mil. Sprint's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2019 was 4.27.

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

S's Debt-to-EBITDA is not ranked ^*
in the Telecommunication Services industry.
Industry Median: 2.23
* Ranked among companies with meaningful Debt-to-EBITDA only.

Sprint Debt-to-EBITDA Historical Data

The historical data trend for Sprint'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.

Sprint Debt-to-EBITDA Chart

Sprint Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Mar15

Mar16

Mar17

Mar18

Mar19

Debt-to-EBITDA

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9.66

4.58

4.14

3.64

4.00

Sprint Quarterly Data
	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19
Debt-to-EBITDA	Get a 7-Day Free Trial															3.46	14.47	4.14	4.53	4.27

Competitive Comparison of Sprint's Debt-to-EBITDA

For the Telecom Services subindustry, Sprint'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.

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

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

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

Sprint Debt-to-EBITDA Calculation

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

Sprint's Debt-to-EBITDA for the fiscal year that ended in Mar. 2019 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(4557	+	35366)	/	9976
	=	4.00

Sprint's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2019 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(5740	+	38930)	/	10464
	=	4.27

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 (Dec. 2019) EBITDA data.

Sprint (NYSE:S) 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.

Sprint Debt-to-EBITDA Related Terms

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Sprint (Sprint) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Sprint Corp (NYSE:S) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

N/A

Address

6200 Sprint Parkway, Overland Park, KS, USA, 66251

Website

https://www.sprint.com

A decade of operational problems has considerably diminished Sprint's position in the wireless industry. It is now the fourth- largest carrier in the United States, serving 26 million postpaid and 9 million prepaid phone customers directly and 13 million via wholesale channels. Over the past five years, the firm's share of the postpaid phone market has declined about 1 percentage point to 12%, leaving it about three fourths the size of T-Mobile U.S., the next smallest carrier. About 4% of sales come from the wireline unit, which provides phone and data services to the wireless unit and external customers. Japanese firm Softbank took a 78% stake in Sprint through the purchase of existing Sprint shares and a $5 billion equity infusion in 2013; it has since increased its stake to 85%.