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Top 5 Companies in the Managed Health Care Industry With the Highest Debt to EBITDA Ratio (UAM, WCG, UNH, MGLN, MOH)

By David Diaz

Below are the three companies in the Managed Health Care 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.

Universal American ranks highest with a a debt to EBITDA ratio of 4.7. Following is WellCare Health Plans with a a debt to EBITDA ratio of 2.6. UnitedHealth ranks third highest with a a debt to EBITDA ratio of 2.5.

Magellan Health Services follows with a a debt to EBITDA ratio of 1.8, and Molina Healthcare rounds out the top five with a a debt to EBITDA ratio of 1.7.

SmarTrend recommended that subscribers consider buying shares of Universal American on March 7th, 2016 as our technology indicated a new Uptrend was in progress when shares hit $6.80. Since that recommendation, shares of Universal American have risen 22.0%. We continue to monitor Universal American for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest debt to ebitda ratio universal american wellcare health plans UnitedHealth magellan health services molina healthcare