Below are the three companies in the Communications Equipment industry with the highest Debt to EBITDA ratio. 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.

EchoStar (NASDAQ:SATS), Cogo Group (NASDAQ:COGO), and Ixia (NASDAQ:XXIA) are the three companies in the Communications Equipment industry with the highest debt to EBITDA ratio. For these companies, their Debt to EBITDA ratio suggests that debt service could be an issue should EBITDA fall.

EchoStar has a Debt/EBITDA ratio of 6.52 based on total debt of $2.4 billion. EchoStar Corporation manufactures broadcast satellite receivers and antennas, and offers commercial satellite services.

Following EchoStar is Cogo Group with a Debt/EBITDA ratio of 3.90 based on total debt of $87.9 million. Finishing up the bottom three is Ixia with a Debt/EBITDA ratio of 3.82 based on total debt of $200.0 million.

Source:fnno