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Relatively High Debt to EBITDA Ratio Detected in Shares of Diamond Offshore in the Oil & Gas Drilling Industry (DO, NBR, SDRL, UNT, RIG)

By David Diaz

Below are the three companies in the Oil & Gas Drilling 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.

Diamond Offshore ranks highest with a a debt to EBITDA ratio of 83.8. Nabors Inds Ltd is next with a a debt to EBITDA ratio of 6.5. Seadrill Ltd ranks third highest with a a debt to EBITDA ratio of 6.1.

Unit Corp follows with a a debt to EBITDA ratio of 5.9, and Transocean Ltd rounds out the top five with a a debt to EBITDA ratio of 4.7.

SmarTrend is tracking the current trend status for Transocean Ltd and will alert subscribers who have RIG in their portfolio or watchlist when shares have changed trend direction.

Keywords: highest debt to ebitda ratio diamond offshore nabors inds ltd seadrill ltd unit corp transocean ltd

Ticker(s): DO NBR SDRL UNT RIG