Reed's has the Highest Debt to EBITDA Ratio in the Soft Drinks Industry (REED, COT, KO, COKE, CCE)
Below are the three companies in the Soft Drinks 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.
Reed's ranks highest with a a debt to EBITDA ratio of 9.9. Following is Cott with a a debt to EBITDA ratio of 6.7. Coca-Cola ranks third highest with a a debt to EBITDA ratio of 4.4.
Coca-Cola Bottling Co Consolidated follows with a a debt to EBITDA ratio of 3.5, and Coca-Cola Enterprises rounds out the top five with a a debt to EBITDA ratio of 3.4.
SmarTrend recommended that its subscribers protect gains by selling shares of Reed's on January 20th, 2016 by issuing a Downtrend alert when the shares were trading at $4.60. Since that call, shares of Reed's have fallen 44.6%. 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 reed's cott Coca-Cola coca-cola bottling co consolidated coca-cola enterprises