CUMULUS MEDIA today announces the launch of PROJECT SHINE, a cross-platform charitable initiative, serving as a nationwide call to local volunteerism through partner VolunteerMatch, the world's largest volunteer engagement network. PROJECT SHINE will be promoted on the company's 422 radio stations and websites across 87 U.S. markets and through CUMULUS MEDIA's Westwood One, the largest audio network in the U.S., with creative promos framed by a new version of iconic rock band Collective Soul's hit "Shine", re-recorded exclusively for PROJECT SHINE.
With that, I'll now turn it over to our President and CEO, Mary Berner. In the third quarter, we continued to deliver against the goals we established at the start of the pandemic crisis: maximizing revenue, offsetting the virus' impact through rigorous cost management and liquidity enhancement, and ensuring that we emerge from the pandemic well-positioned for long-term success.
Shares of Cumulus Media (NASDAQ: CMLS) moved higher by 9.23% in the past three months. Before having a look at the importance of debt, let us look at how much debt Cumulus Media has.Cumulus Media's Debt Based on Cumulus Media's financial statement as of November 5, 2020, long-term debt is at $1.24 billion and current debt is at $5.25 million, amounting to $1.24 billion in total debt. Adjusted for $353.72 million in cash-equivalents, the company's net debt is at $890.29 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.Shareholders look at the debt-ratio to understand how much financial leverage a company has. Cumulus Media has $1.92 billion in total assets, therefore making the debt-ratio 0.65. 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 normal for another.Importance Of Debt Debt is an important factor in the capital structure of a company, and can help it attain growth. Debt usually has a relatively lower financing cost than equity, which makes it an attractive option for executives.However, due to interest-payment obligations, cash-flow of a company can be impacted. 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.See more from Benzinga * Click here for options trades from Benzinga * What Does Bristol-Myers Squibb's Debt Look Like? * What Does General Motors's Debt Look Like?(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.