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

By James Quinn

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 25.3. Following is Encore Capital G with a a debt to EBITDA ratio of 10.7. Santander Consum ranks third highest with a a debt to EBITDA ratio of 10.3.

Ally Financial I follows with a a debt to EBITDA ratio of 9.2, and Lendingclub Corp rounds out the top five with a a debt to EBITDA ratio of 7.8.

SmarTrend recommended that subscribers consider buying shares of Lendingclub Corp on August 8th, 2017 as our technology indicated a new Uptrend was in progress when shares hit $6.13. Since that recommendation, shares of Lendingclub Corp have risen 3.0%. We continue to monitor Lendingclub Corp 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 santander consum ally financial i lendingclub corp