Shares of JC Penney Rank the Highest in Terms of Debt to EBITDA Ratio in the Department Stores Industry (JCP, M, KSS, JWN, DDS)
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.
JC Penney ranks highest with a a debt to EBITDA ratio of 10.1. Macy's is next with a a debt to EBITDA ratio of 2.3. Kohl's ranks third highest with a a debt to EBITDA ratio of 2.0.
Nordstrom follows with a a debt to EBITDA ratio of 1.6, and Dillard's rounds out the top five with a a debt to EBITDA ratio of 1.2.
SmarTrend recommended that its subscribers protect gains by selling shares of Dillard's on April 5th, 2016 by issuing a Downtrend alert when the shares were trading at $80.58. Since that call, shares of Dillard's have fallen 26.5%. 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 JC Penney macy's kohl's Nordstrom dillard's