Platinum Underwriters Holdings (FRA:PMU) Debt-to-EBITDA : 1.23 (As of Dec. 2014)

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What is Platinum Underwriters Holdings Debt-to-EBITDA?

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

Platinum Underwriters Holdings's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2014 was €0.0 Mil. Platinum Underwriters Holdings's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2014 was €202.8 Mil. Platinum Underwriters Holdings's annualized EBITDA for the quarter that ended in Dec. 2014 was €164.7 Mil. Platinum Underwriters Holdings's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2014 was 1.23.

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 Platinum Underwriters Holdings's Debt-to-EBITDA or its related term are showing as below:

FRA:PMU' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0 Med: 0 Max: 1.18
Current: 1.18

During the past 13 years, the highest Debt-to-EBITDA Ratio of Platinum Underwriters Holdings was 1.18. The lowest was 0.00. And the median was 0.00.

FRA:PMU's Debt-to-EBITDA is not ranked
in the Insurance industry.
Industry Median: 1.52 vs FRA:PMU: 1.18

Platinum Underwriters Holdings Debt-to-EBITDA Historical Data

The historical data trend for Platinum Underwriters Holdings'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.

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Platinum Underwriters Holdings Debt-to-EBITDA Chart

Platinum Underwriters Holdings Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Debt-to-EBITDA

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0.86

-1.23

0.66

0.87

1.18

Platinum Underwriters Holdings Quarterly Data
	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14
Debt-to-EBITDA	Get a 7-Day Free Trial															0.95	0.83	1.38	1.57	1.23

Competitive Comparison of Platinum Underwriters Holdings's Debt-to-EBITDA

For the Insurance - Reinsurance subindustry, Platinum Underwriters Holdings'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.

Platinum Underwriters Holdings's Debt-to-EBITDA Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Platinum Underwriters Holdings's Debt-to-EBITDA distribution charts can be found below:

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

Platinum Underwriters Holdings Debt-to-EBITDA Calculation

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

Platinum Underwriters Holdings's Debt-to-EBITDA for the fiscal year 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
	=	(0	+	202.75)	/	171.526
	=	1.18

Platinum Underwriters Holdings'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
	=	(0	+	202.75)	/	164.748
	=	1.23

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. 2014) EBITDA data.

Platinum Underwriters Holdings (FRA:PMU) 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.

Platinum Underwriters Holdings Debt-to-EBITDA Related Terms

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

Platinum Underwriters Holdings (FRA:PMU) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.platinumre.com

Platinum Underwriters Holdings, Ltd. was incorporated on April 19, 2002. It operates as a holding company domiciled in Bermuda. Through its operating subsidiaries, it provides property and marine, casualty and finite risk reinsurance coverages, through reinsurance intermediaries, to a diverse clientele of commercial and personal lines insurers and select reinsurers on a basis. The Company operates through two licensed reinsurance subsidiaries, Platinum Underwriters Bermuda, Ltd., a Bermuda reinsurance company and wholly owned subsidiary of Platinum Holdings, and Platinum Underwriters Reinsurance, Inc., a U.S. reinsurance company and a wholly owned subsidiary of Platinum Underwriters Finance, Inc. The Company operates in Property and Marine, Casualty and Finite Risk segments. It provides reinsurance coverage for damage to property and crops. It provides reinsurance coverage for marine and offshore energy insurance programs. Coverages reinsured include hull damage, protection and indemnity, cargo damage, satellite damage and general marine liability. Within Marine, it also writes commercial and general aviation reinsurance. Casualty reinsurance protects a ceding company against financial loss arising out of the obligation to others for loss or damage to persons or property. The Company's Casualty operating segment mainly includes reinsurance contracts that cover umbrella liability, general and product liability, professional liability, workers' compensation, casualty clash, automobile liability, surety, trade credit, political risk and accident and health. Finite reinsurance includes mainly structured reinsurance contracts with ceding companies whose needs might not be met efficiently through traditional reinsurance products. Reinsurance contracts classified as finite are typically structured to include loss limitation or loss mitigation features. It markets its reinsurance products mainly through non-exclusive relationships with reinsurance brokers. The property and casualty reinsurance industry is competitive. It competes with Arch Capital Group Ltd., Axis Capital Holdings Limited, Endurance Specialty Holdings Ltd., Everest Re Group, Ltd., Montpelier Re Holdings Ltd., PartnerRe Ltd., RenaissanceRe Holdings Ltd. and Transatlantic Holdings, Inc. The business of reinsurance is regulated in several countries, although the degree and type of regulation. Reinsurers are generally subject to less direct regulation than main insurers.

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