What is Trius Therapeutics, Long-Term Debt & Capital Lease Obligation?
Long-Term Debt & Capital Lease Obligation is the debt and capital lease obligation due more than 12 months in the future. Trius Therapeutics,'s Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2013 was €0.00 Mil.
LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. It is calculated as a company's Long-Term Debt & Capital Lease Obligation divides by its Total Assets. Trius Therapeutics,'s Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2013 was €0.00 Mil. Trius Therapeutics,'s Total Assets for the quarter that ended in Jun. 2013 was €56.13 Mil. Trius Therapeutics,'s LT-Debt-to-Total-Asset for the quarter that ended in Jun. 2013 was 0.00.
Trius Therapeutics, Long-Term Debt & Capital Lease Obligation Historical Data
The historical data trend for Trius Therapeutics,'s Long-Term Debt & Capital Lease Obligation 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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Trius Therapeutics, Long-Term Debt & Capital Lease Obligation Chart
Trius Therapeutics, Long-Term Debt & Capital Lease Obligation Calculation
Long-Term Debt is the debt due more than 12 months in the future. The debt can be owed to banks or bondholders. Some companies issue bonds to investors and pay interest on the bonds.
Long-Term Capital Lease Obligation represents the total liability for long-term leases lasting over one year. It's amount equal to the present value (the principal) at the beginning of the lease term less lease payments during the lease term.
The interest paid on companies' debt is reflected in the income statement as interest expense. If a company has too much debt and it cannot serve the interest payment on the debt or repay the matured debt, the company risks bankruptcy. Peter Lynch famously said: A company that does not have debt cannot go bankrupt.
A company's long term debt may have different dates of maturity and interest rates, depending on the terms.
Usually a company issues long term debt to pay for its capital expenditures. Borrowing allows the company to do things that otherwise cannot be done with only the capital it has. But debt can be risky.
Trius Therapeutics, (FRA:TEU) Long-Term Debt & Capital Lease Obligation Explanation
LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. A year-over-year decrease in this metric would suggest the company is progressively becoming less dependent on debt to grow their business.
Trius Therapeutics,'s LT-Debt-to-Total-Asset ratio for the quarter that ended in Jun. 2013 is calculated as:
* 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.
Buffett says that durable competitive advantages carry little to no long-term debt because the company is so profitable that even expansions or acquisitions are self financed.
We are interested in long term debt load for the last ten years. If the ten years of operation show little to no long term debt, then the company has some kind of strong competitive advantage.
Warren Buffett's historic purchases indicate that on any given year, the company should have sufficient yearly net earnings to pay all long term within 3 or 4 year earnings period. (e.g. Coke + Moody's = 1yr)
Companies with enough earning power to pay long term debt in less than 3 or 4 years is a good candidate in our search for long term competitive advantage.
BUT, these companies are targets for leveraged buy outs, which saddles the business with long term debt.
If all else indicates the company has a moat, but it has ton of debt, a leveraged buyout may have created the debt. In these cases the company's bonds offer the better bet, in that the companys earnings power is focused on paying off the debt and not growth.
Important: little or no long term debt often means a Good Long Term Bet
Trius Therapeutics, Long-Term Debt & Capital Lease Obligation Related Terms
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Trius Therapeutics, (FRA:TEU) Business Description
Trius Therapeutics, Inc., was incorporated in California in June 2004. It is a biopharmaceutical company focused on the discovery, development and commercialization of innovative antibiotics for serious infections. The Company is developing tedizolid phosphate, a new, novel antibiotic, for the treatment of serious Gram-positive bacterial infections, including those caused by methicillin-resistant staphylococcus aureus, or MRSA. Tedizolid phosphate is being developed for acute bacterial skin and skin structure infections, or ABSSSI, and pneumonia, and potentially for other indications. ABSSSI is the current classification for complicated skin and skin structure infections. In addition, the company is discovering antibiotics for infections caused by Gram-negative bacteria using its structure based discovery platform. In December 2011, it reported top line data from its first Phase 3 clinical trial, the ESTABLISH 1 (TR701-112) study, of the oral dosage form of tedizolid phosphate for the treatment of ABSSSI. All primary and secondary endpoints for the ESTABLISH 1 study were achieved. In December 2012, the company completed enrollment in its second Phase 3 clinical trial, the ESTABLISH 2 (TR701-113) study, of the intravenous to oral transition therapy for the treatment of ABSSSI. Its current development efforts are focused on developing tedizolid phosphate (formerly known as torezolid phosphate), an intravenous, or IV, and oral antibiotic, for the treatment of serious gram-positive bacterial infections, initially for acute bacterial skin and skin structure infections and subsequently for other indications, including pneumonia. ABSSSI is a new classification for complicated skin and skin structure infections. Tedizolid phosphate is an IV and orally administered second generation oxazolidinone. Its strategy is to discover and develop a pipeline of antibiotics focused on the treatment of life-threatening infections, consisting of tedizolid phosphate and additional compounds discovered internally using its proprietary discovery platform. The Company employs the services of Albany Molecular Research Incorporated to produce tedizolid phosphate API and Patheon, Inc., or Patheon, to produce the solid oral and sterile IV tedizolid phosphate finished products. It currently employs internal resources and third-party consultants to manage its manufacturing contractors. Its competitors include large pharmaceutical and biotechnology companies, specialty pharmaceutical and generic drug companies, academic institutions, government agencies and research institutions. The Company is subject to a variety of foreign regulations governing clinical trials and commercial sales and distribution of its products to the extent it choose to sell any products outside of the United States.
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