EW Scripps has 3.23
B in debt with debt to equity (D/E) ratio of 1.63, which is OK given its current industry classification. The entity has a current ratio of 1.34, which is typical for the industry and considered as normal. Debt can assist EW Scripps until it has trouble settling it off, either with new capital or with free cash flow. So, EW Scripps' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like EW Scripps sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for EW Scripps to invest in growth at high rates of return. When we think about EW Scripps' use of debt, we should always consider it together with cash and equity.
E W financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of E W, including all of E W's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of E W assets, the company is considered highly leveraged. Understanding the
composition and structure of overall E W debt and outstanding corporate bonds gives a good idea of
how risky the capital structure of a business is and if it is worth investing in it. Please read more on our
technical analysis page.
Understanding SSP Total Liabilities
E W Scripps liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. E W Scripps has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on E W balance sheet include debt obligations and money owed to different E W vendors, workers, and loan providers. Below is the chart of SSP short long-term liabilities accounts currently reported on its balance sheet.
You can use E W Scripps
financial leverage analysis tool to get a better grip on understanding its financial position
How important is E W's Liquidity
E W
financial leverage refers to using borrowed capital as a funding source to finance E W Scripps ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. E W financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to E W's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of E W's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between E W's total debt and its cash.
Another Deeper Perspective
The firm reported the last year's revenue of 2.31
B. Total Income to common stockholders was 82.33
M with profit before taxes, overhead, and interest of 1.18
B.
Liabilities Breakdown
552.3 M
Current Liabilities
785.4 M
Long-Term Liabilities
| Total Liabilities | 5.06 Billion |
| Current Liabilities | 552.29 Million |
| Long-Term Liabilities | 785.36 Million |
| Tax Liabilities | 20.94 Million |
Is EW Scripps showing symptom of lower volatility?
Market Risk Adjusted Performance just dropped to -0.12, may hint at upcoming price depreciation. EW Scripps exhibits very low volatility with skewness of -0.82 and kurtosis of 1.56. However, we advise investors to further study EW Scripps technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure EW Scripps' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact EW Scripps' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
EW Scripps Implied Volatility
The Current Takeaway on EW Scripps Investment
When is the right time to buy or sell EW Scripps? Buying stocks such as EW Scripps isn't very hard. However, what challenging for most investors is doing it at the right time. Proper
market timing is something most people cannot do without
sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
While some insiders may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to EW Scripps.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of E W Scripps. Please refer to our
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