• Return to Headlines

Highest Debt to EBITDA Ratio in the Consumer Finance Industry Detected in Shares of Nelnet Inc-Cl A (NNI, ECPG, PRAA, ALLY, RM)

By Nick Russo

Below are the three companies in the Consumer Finance 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.

Nelnet Inc-Cl A ranks highest with a a debt to EBITDA ratio of 24.0. Following is Encore Capital G with a a debt to EBITDA ratio of 9.5. Pra Group Inc ranks third highest with a a debt to EBITDA ratio of 9.4.

Ally Financial I follows with a a debt to EBITDA ratio of 8.9, and Regional Managem rounds out the top five with a a debt to EBITDA ratio of 7.8.

SmarTrend recommended that subscribers consider buying shares of Regional Managem on November 29th, 2017 as our technology indicated a new Uptrend was in progress when shares hit $24.45. Since that recommendation, shares of Regional Managem have risen 40.0%. We continue to monitor Regional Managem for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest debt to ebitda ratio nelnet inc-cl a encore capital g pra group inc ally financial i regional managem

Ticker(s): NNI ECPG PRAA ALLY RM