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Shares of Rh Rank the Highest in Terms of Debt to EBITDA Ratio in the Homefurnishing Retail Industry (RH, PIR, AAN, BBBY, HVT)

By Shiri Gupta

Below are the three companies in the Homefurnishing Retail 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.

Rh ranks highest with a a debt to EBITDA ratio of 5.9. Following is Pier 1 Imports with a a debt to EBITDA ratio of 1.7. Aaron'S Inc ranks third highest with a a debt to EBITDA ratio of 1.5.

Bed Bath &Beyond follows with a a debt to EBITDA ratio of 1.0, and Haverty Furnitur rounds out the top five with a a debt to EBITDA ratio of 0.7.

SmarTrend recommended that its subscribers protect gains by selling shares of Bed Bath &Beyond on December 22nd, 2016 by issuing a Downtrend alert when the shares were trading at $42.60. Since that call, shares of Bed Bath &Beyond have fallen 34.6%. 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 Pier 1 Imports aaron's inc bed bath &beyond haverty furnitur

Ticker(s): RH PIR AAN BBBY HVT