Saksorporated (FRA:PFF) Long-Term Debt & Capital Lease Obligation : €183 Mil (As of Jul. 2013)

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What is Saksorporated 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. Saksorporated's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jul. 2013 was €183 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. Saksorporated's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jul. 2013 was €183 Mil. Saksorporated's Total Assets for the quarter that ended in Jul. 2013 was €1,606 Mil. Saksorporated's LT-Debt-to-Total-Asset for the quarter that ended in Jul. 2013 was 0.11.

Saksorporated's LT-Debt-to-Total-Asset declined from Jul. 2012 (0.18) to Jul. 2013 (0.11). It may suggest that Saksorporated is progressively becoming less dependent on debt to grow their business.

Saksorporated Long-Term Debt & Capital Lease Obligation Historical Data

The historical data trend for Saksorporated'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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Saksorporated Long-Term Debt & Capital Lease Obligation Chart

Saksorporated Annual Data

Trend

Jan04

Jan05

Jan06

Jan07

Jan08

Jan09

Jan10

Jan11

Jan12

Jan13

Long-Term Debt & Capital Lease Obligation

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447.79

345.82

268.72

285.17

195.97

Saksorporated Quarterly Data
	Oct08	Jan09	Apr09	Jul09	Oct09	Jan10	Apr10	Jul10	Oct10	Jan11	Apr11	Jul11	Oct11	Jan12	Apr12	Jul12	Oct12	Jan13	Apr13	Jul13
Long-Term Debt & Capital Lease Obligation	Get a 7-Day Free Trial															304.72	290.18	195.97	166.14	183.05

Saksorporated 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.

Saksorporated (FRA:PFF) Long-Term Debt & Capital Lease Obligation Explanation

Saksorporated's LT-Debt-to-Total-Asset ratio for the quarter that ended in Jul. 2013 is calculated as:

LT-Debt-to-Total-Asset (Q: Jul. 2013 )	=	Long-Term Debt & Capital Lease Obligation (Q: Jul. 2013 )	/	Total Assets (Q: Jul. 2013 )
	=	183.054	/	1605.799
	=	0.11

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

Saksorporated Long-Term Debt & Capital Lease Obligation Related Terms

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Saksorporated Business Description

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GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Saks Incorporated (FRA:PFF) » Definitions » Long-Term Debt & Capital Lease Obligation

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http://www.saksincorporated.com

Saks Incorporated a Tennessee corporation incorporated in 1919. The Company is an omni-channel luxury retailer offering assortment of distinctive fashion apparel, shoes, accessories, jewelry, cosmetics, and gifts. SFA stores are primarily free-standing stores in premier shopping destinations or anchor stores in upscale regional malls. Customers may also purchase SFA products online at saks.com or by catalog. OFF 5TH is a luxury off-price retailer. OFF 5TH stores are primarily located in upscale mixed-use and off-price centers and offer luxury apparel, shoes, and accessories, targeting the value-conscious customer. As of February 2, 2013, the Company operated approximately 43 SFA stores with a total of 5.3 million square feet and 65 OFF 5TH stores with a total of 1.9 million square feet. The Company's stores and Saks Direct carry luxury merchandise from both core vendors and new and emerging designers, including products and brands that are exclusively offered at its stores. It has key relationships with the American and European fashion houses, including Giorgio Armani, Oscar de la Renta, Dolce and Gabbana, Chanel, Gucci, Prada, Louis Vuitton, St. John, Zegna, Theory, Cartier, David Yurman, Hugo Boss, Elie Tahari, Tory Burch, Ralph Lauren, Akris and Burberry, among many others. The Company owns many trademarks and service marks including, but not limited to, Saks Fifth Avenue, Saks & Company, SFA, S5A, The 5TH Avenue Club, SAKSFIRST, Saks Fifth Avenue Men's Collection, and OFF 5TH. It competes with a diverse group of competitors, many of which are omni-channel retailers, including traditional department stores, vendor-owned boutiques, specialty retailers, individual specialty apparel stores, designer boutiques, outlet stores, e-commerce and mail order retailers, and flash-sale businesses.