U.S. markets open in 1 hour 49 minutes
  • S&P Futures

    4,165.50
    -10.75 (-0.26%)
     
  • Dow Futures

    34,003.00
    -78.00 (-0.23%)
     
  • Nasdaq Futures

    13,984.75
    -44.75 (-0.32%)
     
  • Russell 2000 Futures

    2,242.60
    -16.40 (-0.73%)
     
  • Crude Oil

    62.95
    -0.18 (-0.29%)
     
  • Gold

    1,782.80
    +2.60 (+0.15%)
     
  • Silver

    26.12
    +0.02 (+0.08%)
     
  • EUR/USD

    1.2037
    +0.0056 (+0.47%)
     
  • 10-Yr Bond

    1.5730
    0.0000 (0.00%)
     
  • Vix

    17.19
    +0.62 (+3.74%)
     
  • GBP/USD

    1.3911
    +0.0071 (+0.51%)
     
  • USD/JPY

    108.1560
    -0.6270 (-0.58%)
     
  • BTC-USD

    57,053.77
    +2,235.00 (+4.08%)
     
  • CMC Crypto 200

    1,294.76
    -96.95 (-6.97%)
     
  • FTSE 100

    7,031.07
    +11.54 (+0.16%)
     
  • Nikkei 225

    29,685.37
    +2.00 (+0.01%)
     

What Does World Wrestling Entertainment's Debt Look Like?

  • Oops!
    Something went wrong.
    Please try again later.
Benzinga Insights
·2 min read
  • Oops!
    Something went wrong.
    Please try again later.

Shares of World Wrestling Entertainment (NYSE:WWE) rose by 47.94% in the past three months. Before we understand the importance of debt, let us look at how much debt World Wrestling Enter has.

World Wrestling Enter's Debt

According to the World Wrestling Enter's most recent balance sheet as reported on October 29, 2020, total debt is at $803.38 million, with $400.60 million in long-term debt and $402.79 million in current debt. Adjusting for $519.46 million in cash-equivalents, the company has a net debt of $283.92 million.

Let's define some of the terms we used in the paragraph above. Current debt is the portion of a company's debt which is due within 1 year, while long-term debt is the portion due in more than 1 year. Cash equivalents include cash and any liquid securities with maturity periods of 90 days or less. Total debt equals current debt plus long-term debt minus cash equivalents.

Investors look at the debt-ratio to understand how much financial leverage a company has. World Wrestling Enter has $1.35 billion in total assets, therefore making the debt-ratio 0.59. As a rule of thumb, a debt-ratio more than one indicates that a considerable portion of debt is funded by assets. A higher debt-ratio can also imply that the company might be putting itself at risk for default, if interest rates were to increase. However, debt-ratios vary widely across different industries. A debt ratio of 25% might be higher for one industry and average for another.

Importance Of Debt

Besides equity, debt is an important factor in the capital structure of a company, and contributes to its growth. Due to its lower financing cost compared to equity, it becomes an attractive option for executives trying to raise capital.

However, interest-payment obligations can have an adverse impact on the cash-flow of the company. Having financial leverage also allows companies to use additional capital for business operations, allowing equity owners to retain excess profit, generated by the debt capital.

Looking for stocks with low debt-to-equity ratios? Check out Benzinga Pro, a market research platform which provides investors with near-instantaneous access to dozens of stock metrics - including debt-to-equity ratio. Click here to learn more.

What Does World Wrestling Enter's Debt Look Like?
What Does World Wrestling Enter's Debt Look Like?

See more from Benzinga

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.