Atlanta Braves Debt

BATRA Stock  USD 41.95  0.16  0.38%   
Atlanta Braves Holdings, holds a debt-to-equity ratio of 1.764. At present, Atlanta Braves' Debt To Equity is projected to slightly decrease based on the last few years of reporting. The current year's Interest Debt Per Share is expected to grow to 10.30, whereas Short and Long Term Debt Total is forecasted to decline to about 639.2 M. With a high degree of financial leverage come high-interest payments, which usually reduce Atlanta Braves' Earnings Per Share (EPS).

Asset vs Debt

Equity vs Debt

Atlanta Braves' liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Atlanta Braves' 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 Atlanta Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Atlanta Braves' stakeholders.
For most companies, including Atlanta Braves, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Atlanta Braves Holdings,, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Atlanta Braves' management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book
4.9144
Book Value
8.536
Operating Margin
0.022
Profit Margin
(0.07)
Return On Assets
(0.02)
As of November 28, 2024, Total Current Liabilities is expected to decline to about 222 M. In addition to that, Liabilities And Stockholders Equity is expected to decline to about 1.4 B
  
Check out the analysis of Atlanta Braves Fundamentals Over Time.

Atlanta Braves Bond Ratings

Atlanta Braves Holdings, financial ratings play a critical role in determining how much Atlanta Braves 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 Atlanta Braves' borrowing costs.
Piotroski F Score
7
StrongView
Beneish M Score
(2.75)
Unlikely ManipulatorView

Atlanta Braves Holdings, Debt to Cash Allocation

As Atlanta Braves Holdings, follows its natural business cycle, the capital allocation decisions will not magically go away. Atlanta Braves' 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.
Atlanta Braves Holdings, has accumulated 672.86 M in total debt with debt to equity ratio (D/E) of 1.76, which is about average as compared to similar companies. Atlanta Braves Holdings, has a current ratio of 1.09, suggesting that it is in a questionable position to pay out its financial obligations in time and when they become due. Note, when we think about Atlanta Braves' use of debt, we should always consider it together with its cash and equity.

Atlanta Braves Total Assets Over Time

Atlanta Braves Assets Financed by Debt

The debt-to-assets ratio shows the degree to which Atlanta Braves 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.

Atlanta Braves Debt Ratio

    
  36.0   
It appears about 64% of Atlanta Braves' assets are financed through equity. Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the Atlanta Braves' operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Atlanta Braves, which in turn will lower the firm's financial flexibility.

Atlanta Braves Corporate Bonds Issued

Most Atlanta bonds can be classified according to their maturity, which is the date when Atlanta Braves Holdings, has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

Atlanta Short Long Term Debt Total

Short Long Term Debt Total

639.21 Million

At present, Atlanta Braves' Short and Long Term Debt Total is projected to decrease significantly based on the last few years of reporting.

Understaning Atlanta Braves Use of Financial Leverage

Atlanta Braves' financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Atlanta Braves' total debt position, including all outstanding debt obligations, and compares it with Atlanta Braves' equity. Financial leverage can amplify the potential profits to Atlanta Braves' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Atlanta Braves is unable to cover its debt costs.
Last ReportedProjected for Next Year
Short and Long Term Debt Total672.9 M639.2 M
Net Debt547.7 M520.3 M
Long Term Debt527.1 M500.8 M
Long Term Debt Total17.2 B11.5 B
Short Term Debt42.2 M40 M
Short and Long Term Debt42.2 M40 M
Net Debt To EBITDA(26.71)(25.38)
Debt To Equity 1.08  2.07 
Interest Debt Per Share 9.81  10.30 
Debt To Assets 0.38  0.36 
Long Term Debt To Capitalization 0.50  0.42 
Total Debt To Capitalization 0.52  0.50 
Debt Equity Ratio 1.08  2.07 
Debt Ratio 0.38  0.36 
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When determining whether Atlanta Braves Holdings, is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Atlanta Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Atlanta Braves Holdings, Stock. Highlighted below are key reports to facilitate an investment decision about Atlanta Braves Holdings, Stock:
Check out the analysis of Atlanta Braves Fundamentals Over Time.
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Is Movies & Entertainment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Atlanta Braves. If investors know Atlanta will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Atlanta Braves listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.652
Earnings Share
(0.72)
Revenue Per Share
10.958
Quarterly Revenue Growth
0.069
Return On Assets
(0.02)
The market value of Atlanta Braves Holdings, is measured differently than its book value, which is the value of Atlanta that is recorded on the company's balance sheet. Investors also form their own opinion of Atlanta Braves' value that differs from its market value or its book value, called intrinsic value, which is Atlanta Braves' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Atlanta Braves' market value can be influenced by many factors that don't directly affect Atlanta Braves' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Atlanta Braves' value and its price as these two are different measures arrived at by different means. Investors typically determine if Atlanta Braves is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Atlanta Braves' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

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.
By borrowing funds, the firm incurs a debt that must be paid. But, this debt is paid in small installments over a relatively long period of time. This frees funds for more immediate use in the stock market. For example, suppose a company can afford a new factory but will be left with negligible free cash. In that case, it may be better to finance the factory and spend the cash on hand on inputs, labor, or even hold a significant portion as a reserve against unforeseen circumstances.

The Risk of Financial Leverage

The most obvious and apparent risk of leverage is that if price changes unexpectedly, the leveraged position can lead to severe losses. For example, imagine a hedge fund seeded by $50 worth of investor money. The hedge fund borrows another $50 and buys an asset worth $100, leading to a leverage ratio of 2:1. For the investor, this is neither good nor bad -- until the asset price changes. If the asset price goes up 10 percent, the investor earns $10 on $50 of capital, a net gain of 20 percent, and is very pleased with the increased gains from the leverage. However, if the asset price crashes unexpectedly, say by 30 percent, the investor loses $30 on $50 of capital, suffering a 60 percent loss. In other words, the effect of leverage is to increase the volatility of returns and increase the effects of a price change on the asset to the bottom line while increasing the chance for profit as well.