These 5 Healthcare Stocks Have Extremely High Debt Levels

The following five companies in the Healthcare sector have the highest debt-to-equity levels.  Note that this list excludes all companies whose market capitalization is $500 million or less:

  1. Elan Corporation, plc (NYSE:ELN):  The shares have traded in a 52-week range of $4.25 to $8.47 and most recently traded at $8.44 per share.  The company has total debt of $1.27 billion and a total debt to equity ratio of 464.  It has $499 million in cash, a current ratio of 2.42, and book value per share of $0.47.  Its market capitalization is $4.95 billion.  About the company: Elan Corporation plc is a specialty pharmaceutical company.  The Group’s drug delivery technologies are designed to aid and control the absorption and utilization of active pharmaceutical compounds.  Elan’s Pharmaceutical division focuses on the discovery, development and commercialization of products in the areas of acute care, pain management, infectious diseases and neurology.
  2. Emeritus Corporation (NYSE:ESC):  The shares have traded in a 52-week range of $14.55 to $26.35 per share and most recently traded at $23.30 per share.  It has total debt of $2.02 billion and a total debt to equity ratio of 575.53.  It has $113 million in cash, a current ratio of 0.92, and a book value per share of $7.79.  Its market capitalization is $1.03 billion.  About the company: Emeritus Corporation is a fully integrated senior housing services company focused on operating residential-style assisted-living communities.  The Company develops and operates freestanding assisted living communities throughout the United States.  Emeritus has also commenced development of its facilities in Japan and Canada.
  3. Health Management Associates, Inc. (NYSE:HMA):  The shares have traded in a 52-week range of $6.13 to $11.74 and most recently traded at $11.49 per share.  It has total debt of $3.2 billion and a total debt to equity ratio of 521.49.  It has $227.67 million in cash, a current ratio of 2.23, and a book value per share of $2.37.  its market capitalization is $2.91 billion.  About the company:  Health Management Associates, Inc. operates general acute care hospitals in rural communities located primarily in the southeastern and southwestern United States.  The Company’s facilities offer a wide range of medical and surgical services.
  4. HEALTHSOUTH Corp. (NYSE:HLS):  The shares have traded in a 52-week range of $16.20 to $27.65 and most recently traded at $27.38.  It has $1.55 billion in debt and a debt to equity ratio of 337.35.  It has $141 million in cash, a current ratio of 1.54, and a book value per share of $(0.12). Its market capitalization is $2.6 billion. About the company: HEALTHSOUTH Corporation provides inpatient rehabilitative healthcare services.  The Company operates inpatient rehabilitation hospitals, long-term acute care hospitals, outpatient and rehabilitation satellites, and home health agencies.  HEALTHSOUTH provides treatment on both an inpatient and outpatient basis.
  5. Community Health Systems (NYSE:CYH):  The shares have traded in a 52-week range of $22.33 to $42.50 and most recently traded at $30.26.  It has $9.14 billion in debt and a total debt to equity ratio of 331.56.  It has $270.72 million in cash, a current ratio of 1.77 and a book value per share of $25.20.  Its market capitalization is $2.77 billion.  About the company: Community Health Systems, Inc. owns, leases, and operates hospitals in multiple states.  The Hospitals services include emergency room services, general surgery, critical care, internal medicine, obstetrics and diagnostic services.  Community Health also owns interests in physicians, physician practices, imaging centers, home health agencies and ambulatory surgery centers.

Value playsThese Healthcare Stocks Have Very Low P/E Ratios in the Sector>>

Note: Financial data is taken from Yahoo! Finance.  Selected other data is taken from Google Finance and publicly available SEC filings.  All data are assumed to be accurate.

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