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Top 3 Companies in the Life Sciences Tools & Services Industry With the Highest Debt to EBITDA Ratio (ILMN, PKI, TMO)

Published on Mon, 07/22/2013 - 11:05
By Mallory Stone

Below are the three companies in the Life Sciences Tools & Services 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.

Illumina (NASDAQ:ILMN) is highest with a debt to EBITDA ratio of 4.1. Illumina, Inc. develops, manufactures and markets integrated systems for the large scale analysis of genetic variation and biological function. The Company provides a comprehensive line of products and services that currently serve the sequencing, genotyping and gene expression markets for genomic research centers, pharmaceutical companies, academic institutions and biotechnology companies. Illumina has traded 333,000 shares thus far today, vs. average volume of 1.1 million shares per day. The stock has matched the Dow (with a 0.1% move) and matched the S&P 500 (with a 0.1% move) during today's trading.

Following is PerkinElmer (NYSE:PKI) with a debt to EBITDA ratio of 3.2.

Finishing up the top three is Thermo Fisher Scientific (NYSE:TMO), with a debt to EBITDA ratio of 2.7.

By Mallory Stone