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Highest Debt to EBITDA Ratio in the Application Software Industry Detected in Shares of Nuance Communica (NUAN, RP, QADA, VRNT, PTC)

By Nick Russo

Below are the three companies in the Application Software 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.

Nuance Communica ranks highest with a a debt to EBITDA ratio of 22.9. Realpage Inc is next with a a debt to EBITDA ratio of 5.7. Qad Inc-A ranks third highest with a a debt to EBITDA ratio of 5.1.

Verint Systems follows with a a debt to EBITDA ratio of 5.0, and Ptc Inc rounds out the top five with a a debt to EBITDA ratio of 4.1.

SmarTrend recommended that its subscribers protect gains by selling shares of Ptc Inc on July 25th, 2019 by issuing a Downtrend alert when the shares were trading at $75.31. Since that call, shares of Ptc Inc have fallen 13.1%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: highest debt to ebitda ratio nuance communica realpage inc qad inc-a verint systems ptc inc

Ticker(s): NUAN RP QADA VRNT PTC