PetSmart (FRA:PEM) Debt-to-EBITDA : 0.62 (As of Oct. 2014)

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What is PetSmart Debt-to-EBITDA?

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

PetSmart's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Oct. 2014 was €57 Mil. PetSmart's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Oct. 2014 was €355 Mil. PetSmart's annualized EBITDA for the quarter that ended in Oct. 2014 was €662 Mil. PetSmart's annualized Debt-to-EBITDA for the quarter that ended in Oct. 2014 was 0.62.

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

FRA:PEM' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0 Med: 0 Max: 0.58
Current: 0.58

During the past 13 years, the highest Debt-to-EBITDA Ratio of PetSmart was 0.58. The lowest was 0.00. And the median was 0.00.

FRA:PEM's Debt-to-EBITDA is not ranked
in the Retail - Cyclical industry.
Industry Median: 2.68 vs FRA:PEM: 0.58

PetSmart Debt-to-EBITDA Historical Data

The historical data trend for PetSmart'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.

PetSmart Debt-to-EBITDA Chart

PetSmart Annual Data

Trend

Jan06

Jan07

Jan08

Jan09

Jan10

Jan11

Jan12

Jan13

Jan14

Jan15

Debt-to-EBITDA

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0.85

0.76

0.59

0.56

0.72

PetSmart Quarterly Data
	Apr10	Jul10	Oct10	Jan11	Apr11	Jul11	Oct11	Jan12	Apr12	Jul12	Oct12	Jan13	Apr13	Jul13	Oct13	Jan14	Apr14	Jul14	Oct14	Jan15
Debt-to-EBITDA	Get a 7-Day Free Trial															0.47	0.57	0.58	0.62	0.57

Competitive Comparison of PetSmart's Debt-to-EBITDA

For the Specialty Retail subindustry, PetSmart'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.

PetSmart's Debt-to-EBITDA Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, PetSmart's Debt-to-EBITDA distribution charts can be found below:

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

PetSmart Debt-to-EBITDA Calculation

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

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

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(49.095	+	331.472)	/	681.702
	=	0.56

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

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(56.575	+	354.602)	/	662.128
	=	0.62

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 (Oct. 2014) EBITDA data.

PetSmart (FRA:PEM) 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.

PetSmart Debt-to-EBITDA Related Terms

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

PetSmart (FRA:PEM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » PetSmart Inc (FRA:PEM) » Definitions » Debt-to-EBITDA

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PetSmart Inc was incorporated in the State of Delaware in 1986. The Company provides specialty products, services and solutions for the lifetime needs of pets in North America. It offers a broad selection of products for all the life stages of pets, as well as various pet services including professional grooming, training, day camp for dogs and boarding. It also offers pet products through its website, PetSmart.com. As of 2 February 2014, it operated 1,333 retail stores and had full-service veterinary hospitals in 844 of its stores. MMI Holdings, Inc., through a wholly owned subsidiary, Medical Management International, Inc., operated 837 of the veterinary hospitals under the registered trade name of "Banfield, The Pet Hospital." The remaining 7 hospitals are operated by other third parties in Canada. The Company opened 55 net new stores in 2013 and at the end of the year operated 1,333 retail stores in the United States, Puerto Rico and Canada. Its stores typically range in size from 12,000 to 27,500 square feet and carry a broad selection of high-quality pet products at everyday low prices. It offers approximately 11,000 distinct items in stores and 9,000 additional items on its website, PetSmart.com, including nationally recognized brand names, as well as an extensive selection of proprietary brands across a range of product categories. All the Company's stores feature pet styling salons that provide high-quality grooming services and offer comprehensive pet training services. Its PetsHotels provide boarding for dogs and cats, which includes 24-hour supervision by caregivers who are trained to provide personalized pet care, temperature controlled rooms and suites, daily specialty treats and play time, as well as day camp for dogs. As of 3 February 2014, it operated 199 PetsHotels. The Company's trademarks include PetSmart, PetSmart.com, PetSmart PetsHotel, PetPerks, and Where Pets Are Family, as well as many others.

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