AMC Networks Debt
| AMCX Stock | USD 9.42 0.05 0.53% |
AMC Networks holds a debt-to-equity ratio of 2.332. At this time, AMC Networks' Cash Flow To Debt Ratio is fairly stable compared to the past year. With a high degree of financial leverage come high-interest payments, which usually reduce AMC Networks' Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
AMC Networks' liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. AMC Networks' cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the Company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps AMC Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect AMC Networks' stakeholders.
AMC Networks Quarterly Net Debt |
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For most companies, including AMC Networks, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for AMC Networks, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, AMC Networks' management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book 0.374 | Book Value 25.331 | Operating Margin 0.162 | Profit Margin 0.0145 | Return On Assets 0.0472 |
Given that AMC Networks' debt-to-equity ratio measures a Company's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which AMC Networks is acquiring new debt as a mechanism of leveraging its assets. A high debt-to-equity ratio is generally associated with increased risk, implying that it has been aggressive in financing its growth with debt. Another way to look at debt-to-equity ratios is to compare the overall debt load of AMC Networks to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, AMC Networks is said to be less leveraged. If creditors hold a majority of AMC Networks' assets, the Company is said to be highly leveraged.
At this time, AMC Networks' Non Current Liabilities Total is fairly stable compared to the past year. Non Current Liabilities Other is likely to rise to about 234.7 M in 2024, whereas Total Current Liabilities is likely to drop slightly above 835.2 M in 2024. AMC |
AMC Networks Bond Ratings
AMC Networks financial ratings play a critical role in determining how much AMC Networks have to pay to access credit markets, i.e., the amount of interest on their issued debt. The threshold between investment-grade and speculative-grade ratings has important market implications for AMC Networks' borrowing costs.| Piotroski F Score | 6 | Healthy | View |
| Beneish M Score | (2.25) | Unlikely Manipulator | View |
AMC Networks Debt to Cash Allocation
As AMC Networks follows its natural business cycle, the capital allocation decisions will not magically go away. AMC Networks' decision-makers have to determine if most of the cash flows will be poured back into or reinvested in the business, reserved for other projects beyond operational needs, or paid back to stakeholders and investors.
AMC Networks currently holds 2.48 B in liabilities with Debt to Equity (D/E) ratio of 2.33, implying the company greatly relies on financing operations through barrowing. AMC Networks has a current ratio of 1.84, which is within standard range for the sector. Note, when we think about AMC Networks' use of debt, we should always consider it together with its cash and equity.AMC Networks Common Stock Shares Outstanding Over Time
AMC Networks Assets Financed by Debt
The debt-to-assets ratio shows the degree to which AMC Networks uses debt to finance its assets. It includes both long-term and short-term borrowings maturing within one year. It also includes both tangible and intangible assets, such as goodwill.AMC Networks Debt Ratio | 72.0 |
AMC Networks Corporate Bonds Issued
AMC Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning AMC Networks Use of Financial Leverage
Understanding the structure of AMC Networks' debt obligations provides insight if it is worth investing in it. Financial leverage can amplify the potential profits to AMC Networks' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its cost of debt.
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 2.5 B | 3.1 B | |
| Net Debt | 1.9 B | 2.3 B | |
| Short Term Debt | 101.2 M | 88.7 M | |
| Long Term Debt | 2.3 B | 3.1 B | |
| Long Term Debt Total | 3.4 B | 3.4 B | |
| Short and Long Term Debt | 67.5 M | 64.1 M | |
| Net Debt To EBITDA | 1.31 | 2.26 | |
| Debt To Equity | 2.25 | 2.37 | |
| Interest Debt Per Share | 57.37 | 36.01 | |
| Debt To Assets | 0.48 | 0.72 | |
| Long Term Debt To Capitalization | 0.69 | 1.18 | |
| Total Debt To Capitalization | 0.69 | 1.18 | |
| Debt Equity Ratio | 2.25 | 2.37 | |
| Debt Ratio | 0.48 | 0.72 | |
| Cash Flow To Debt Ratio | 0.09 | 0.15 |
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When running AMC Networks' price analysis, check to measure AMC Networks' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy AMC Networks is operating at the current time. Most of AMC Networks' value examination focuses on studying past and present price action to predict the probability of AMC Networks' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move AMC Networks' price. Additionally, you may evaluate how the addition of AMC Networks to your portfolios can decrease your overall portfolio volatility.
What is Financial Leverage?
Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing. In most cases, the debt provider will limit how much risk it is ready to take and indicate a limit on the extent of the leverage it will allow. In the case of asset-backed lending, the financial provider uses the assets as collateral until the borrower repays the loan. In the case of a cash flow loan, the general creditworthiness of the company is used to back the loan. The concept of leverage is common in the business world. It is mostly used to boost the returns on equity capital of a company, especially when the business is unable to increase its operating efficiency and returns on total investment. Because earnings on borrowing are higher than the interest payable on debt, the company's total earnings will increase, ultimately boosting stockholders' profits.Leverage and Capital Costs
The debt to equity ratio plays a role in the working average cost of capital (WACC). The overall interest on debt represents the break-even point that must be obtained to profitability in a given venture. Thus, WACC is essentially the average interest an organization owes on the capital it has borrowed for leverage. Let's say equity represents 60% of borrowed capital, and debt is 40%. This results in a financial leverage calculation of 40/60, or 0.6667. The organization owes 10% on all equity and 5% on all debt. That means that the weighted average cost of capital is (.4)(5) + (.6)(10) - or 8%. For every $10,000 borrowed, this organization will owe $800 in interest. Profit must be higher than 8% on the project to offset the cost of interest and justify this leverage.Benefits of Financial Leverage
Leverage provides the following benefits for companies:- Leverage is an essential tool a company's management can use to make the best financing and investment decisions.
- It provides a variety of financing sources by which the firm can achieve its target earnings.
- Leverage is also an essential technique in investing as it helps companies set a threshold for the expansion of business operations. For example, it can be used to recommend restrictions on business expansion once the projected return on additional investment is lower than the cost of debt.