Top 5 Companies in the Health Care Distributors Industry With the Highest Debt to EBITDA Ratio (ABC, PMC, PDCO, OMI, MCK)
Below are the three companies in the Health Care Distributors 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.
AmerisourceBergen ranks highest with a a debt to EBITDA ratio of 5.2. Following is PharMerica with a a debt to EBITDA ratio of 3.5. Patterson ranks third highest with a a debt to EBITDA ratio of 2.8.
Owens & Minor follows with a a debt to EBITDA ratio of 2.2, and McKesson rounds out the top five with a a debt to EBITDA ratio of 2.2.
SmarTrend recommended that subscribers consider buying shares of PharMerica on April 19th, 2016 as our technology indicated a new Uptrend was in progress when shares hit $23.90. Since that recommendation, shares of PharMerica have risen 10.5%. We continue to monitor PharMerica for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.
Keywords: highest debt to ebitda ratio AmerisourceBergen pharmerica patterson owens & minor McKesson