Over the past three months, shares of Entercom Communications (NYSE:ETM) moved higher by 98.44%. Before we understand the importance of debt, let us look at how much debt Entercom Communications has. Entercom Communications's Debt Based on Entercom Communications's financial statement as of November 9, 2020, long-term debt is at $1.65 billion and current debt is at $5.49 million, amounting to $1.66 billion in total debt. Adjusted for $32.37 million in cash-equivalents, the company's net debt is at $1.63 billion. 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. Entercom Communications has $3.47 billion in total assets, therefore making the debt-ratio 0.48. Generally speaking, a debt-ratio more than one means that a large portion of debt is funded by assets. As the debt-ratio increases, so the does the risk of defaulting on loans, if interest rates were to increase. Different industries have different thresholds of tolerance for debt-ratios. A debt ratio of 40% might be higher for one industry and average for another. Why Investors Look At 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, due to interest-payment obligations, cash-flow of a company can be impacted. Equity owners can keep excess profit, generated from the debt capital, when companies use the debt capital for its business operations. 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 BenzingaClick here for options trades from BenzingaEntercom Communications: Q4 Earnings Insights12 Communication Services Stocks Moving In Wednesday's After-Market Session© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Shares of Entercom Communications (NYSE: ETM) were tumbling 16% in morning trading Wednesday after the radio broadcaster reported fourth-quarter revenue that was up 19% sequentially, but down 22% year over year. CEO David Field said "the pandemic continues to hobble a large number of our advertisers, particularly locally," but he was hopeful the combination of widely distributed vaccines, new stimulus spending, and pent-up consumer demand would drive a strong recovery. Entercom stock is up 150% so far this year, even after the drubbing it's taking today, on a rally that largely began last October after it announced it had signed a six-year deal with Flutter Entertainment's (OTC: PDYPF) FanDuel as its official sportsbook partner.
Shares of Entercom Communications (NYSE:ETM) decreased 13.7% in pre-market trading after the company reported Q4 results. Quarterly Results Earnings per share fell 57.50% over the past year to $0.17, which missed the estimate of $0.20. Revenue of $319,495,000 decreased by 22.85% from the same period last year, which beat the estimate of $318,820,000. Looking Ahead Earnings guidance hasn't been issued by the company for now. Revenue guidance hasn't been issued by the company for now. Details Of The Call Date: Feb 24, 2021 View more earnings on ETM Time: 10:00 AM ET Webcast URL: https://event.on24.com/eventRegistration/EventLobbyServlet?target=registration.jsp&referrer=https%3A%2F%2Fentercom.com%2F&eventid=2954037&sessionid=1&key=873D29030A3E61D8CA63F4B9E8B7984F®Tag=&V2=false&sourcepage=register Technicals 52-week high: $6.34 52-week low: $0.75 Price action over last quarter: Up 200.89% Company Overview Entercom Communications Corp is a radio broadcasting company in the United States. It has a portfolio of approximately 125 radio stations in around 25 markets across the country. The company invests in local talent, news, sports, events, communities and people. The company generates revenue from the sale to advertisers of various services and products, including commercial broadcast time; digital advertising; local events; e-commerce where an advertiser's goods and services are sold through its websites; and integrated digital advertising solutions. See more from BenzingaClick here for options trades from Benzinga12 Communication Services Stocks Moving In Wednesday's After-Market Session© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.