Shares of Endo Pharmaceuticals Rank the Highest in Terms of Debt to EBITDA Ratio in the Pharmaceuticals Industry (ENDP, THRX, AGN, VRX, AKRX)
Below are the three companies in the Pharmaceuticals 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.
Endo Pharmaceuticals ranks highest with a a debt to EBITDA ratio of 45.2. Following is Theravance with a a debt to EBITDA ratio of 26.3. Allergan ranks third highest with a a debt to EBITDA ratio of 14.9.
Valeant Pharmaceuticals International follows with a a debt to EBITDA ratio of 7.3, and Akorn rounds out the top five with a a debt to EBITDA ratio of 6.9.
SmarTrend recommended that subscribers consider buying shares of Akorn on July 12th, 2016 as our technology indicated a new Uptrend was in progress when shares hit $31.15. Since that recommendation, shares of Akorn have risen 8.5%. We continue to monitor Akorn for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.
Keywords: highest debt to ebitda ratio Endo Pharmaceuticals theravance Allergan valeant pharmaceuticals international akorn