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J.C. Penney Co is Among the Companies in the Department Stores Industry With the Highest Debt to EBITDA Ratio (JCP, M, KSS, JWN, DDS)

By Amy Schwartz

Below are the three companies in the Department Stores 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.

J.C. Penney Co ranks highest with a a debt to EBITDA ratio of 6.0. Following is Macy'S Inc with a a debt to EBITDA ratio of 2.1. Kohls Corp ranks third highest with a a debt to EBITDA ratio of 1.9.

Nordstrom Inc follows with a a debt to EBITDA ratio of 1.7, and Dillards Inc-A rounds out the top five with a a debt to EBITDA ratio of 1.4.

SmarTrend recommended that subscribers consider buying shares of Macy'S Inc on February 15th, 2018 as our technology indicated a new Uptrend was in progress when shares hit $26.13. Since that recommendation, shares of Macy'S Inc have risen 17.7%. We continue to monitor Macy'S Inc for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest debt to ebitda ratio j.c. penney co macy's inc kohls corp nordstrom inc dillards inc-a

Ticker(s): JCP M KSS JWN DDS