Edensoft Holdings (HKSE:01147) Debt-to-EBITDA : 22.34 (As of Dec. 2023)

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What is Edensoft Holdings Debt-to-EBITDA?

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

Edensoft Holdings's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was HK$56.3 Mil. Edensoft Holdings's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was HK$4.2 Mil. Edensoft Holdings's annualized EBITDA for the quarter that ended in Dec. 2023 was HK$2.7 Mil. Edensoft Holdings's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 22.34.

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

HKSE:01147' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -0.78 Med: 0.36 Max: 4.73
Current: 4.73

During the past 8 years, the highest Debt-to-EBITDA Ratio of Edensoft Holdings was 4.73. The lowest was -0.78. And the median was 0.36.

HKSE:01147's Debt-to-EBITDA is ranked worse than
82.87% of 1605 companies
in the Software industry
Industry Median: 1.06 vs HKSE:01147: 4.73

Edensoft Holdings Debt-to-EBITDA Historical Data

The historical data trend for Edensoft 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.

* Premium members only.

Edensoft Holdings Debt-to-EBITDA Chart

Edensoft Holdings Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

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0.32

0.31

0.24

-0.78

4.73

Edensoft Holdings Semi-Annual Data
	Dec16	Dec17	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial								0.52	0.47	-0.31	2.57	22.34

Competitive Comparison of Edensoft Holdings's Debt-to-EBITDA

For the Information Technology Services subindustry, Edensoft 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.

Edensoft Holdings's Debt-to-EBITDA Distribution in the Software Industry

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

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

Edensoft Holdings Debt-to-EBITDA Calculation

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

Edensoft Holdings'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
	=	(56.275	+	4.227)	/	12.796
	=	4.73

Edensoft Holdings'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
	=	(56.275	+	4.227)	/	2.708
	=	22.34

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.

Edensoft Holdings (HKSE:01147) 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.

Edensoft Holdings Debt-to-EBITDA Related Terms

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

Edensoft Holdings (HKSE:01147) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Edensoft Holdings Ltd (HKSE:01147) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

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Address

Hua Fu Street, 1006 Shennan Road, West, 2nd Floor, Building A, Futian Technology Square, Shenzhen International Innovation Center, Futian District, Shenzhen, CHN

Website

https://www.edensoft.com.cn

Edensoft Holdings Ltd is engaged in provision of IT infrastructure services, IT implementation and supporting services and cloud services in the PRC. Its segment includes IT infrastructure services; IT implementation and supporting services; and Cloud services. It derives key revenue from the IT infrastructure services segment that assess customers' needs and their existing IT environment and providing IT infrastructure services by advising them on the suitable hardware and software products that their IT environment would require, and procuring the relevant hardware and software products from IT products vendors and installing these IT products in customers' IT environment. It operates in Mainland China and Hong Kong, of which prime revenue is derived from Mainland China.

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