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Alliance One Int is Among the Companies in the Tobacco Industry With the Highest Debt to EBITDA Ratio (AOI, VGR, PM, RAI, UVV)

By Amy Schwartz

Below are the three companies in the Tobacco industry with the highest debt to EBITDA ratios. This ratio indicates how many years of EBITDA would be necessary in order to pay back all the debt (assuming Debt and EBITDA are constant). Typically, this ratio is considered to be alarming when it is greater than 3.0 but this can vary and should be looked at within the context of the industry.

Alliance One Int ranks highest with a a debt to EBITDA ratio of 10.1. Vector Group Ltd is next with a a debt to EBITDA ratio of 5.0. Philip Morris In ranks third highest with a a debt to EBITDA ratio of 2.8.

Reynolds America follows with a a debt to EBITDA ratio of 2.2, and Universal Corp rounds out the top five with a a debt to EBITDA ratio of 2.0.

SmarTrend recommended that subscribers consider buying shares of Reynolds America on October 21st, 2016 as our technology indicated a new Uptrend was in progress when shares hit $54.89. Since that recommendation, shares of Reynolds America have risen 19.1%. We continue to monitor Reynolds America for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest debt to ebitda ratio alliance one int vector group ltd philip morris in :rai reynolds america universal corp

Ticker(s): AOI VGR PM UVV