Liabilities Breakdown
638.5 M
Total Liabilities
Current Liabilities
| Total Liabilities | 638.53 Million | |
| Current Liabilities | 62.76 Million | |
| Long-Term Liabilities | 737.16 Million |
Will Townsquare Media (NYSE:TSQ) debt increase in September
 | By Raphi Shpitalnik | Macroaxis Story |
Townsquare Media is scheduled to announce its earnings today. Townsquare Media Cash and Equivalents Turnover is very stable at the moment as compared to the past year. Townsquare Media reported last year Cash and Equivalents Turnover of 5.91. As of 10th of August 2020, Cash Flow Per Share is likely to grow to 2.47, while Earnings Before Interest Taxes and Depreciation Amortization EBITDA are likely to drop (11.5 M). While some of us are becoming more enthusiastic about communication services space, let's recap Townsquare Media in greater detail to make a better estimate of its debt utilization.
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Reviewed by Michael Smolkin
The company has 658.96 M in debt with debt to equity (D/E) ratio of 5.43, demonstrating that Townsquare Media may be unable to create cash to meet all of its financial commitments. Townsquare Media has a current ratio of 1.91, which is typical for the industry and considered as normal. The company has Net Profit Margin of (28.5) %, which means that it does not effectively control expenditures or properly executes on its pricing strategies. This is way below average. In the same way, it shows Net Operating Margin of 22.37 %, which entails that for every 100 dollars of revenue, it generated 0.22 of operating income. Townsquare Media financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Townsquare Media, including all of Townsquare Media'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 Townsquare Media assets, the company is considered highly leveraged. Understanding the composition and structure of overall Townsquare Media 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.
How important is Townsquare Media's Liquidity
Townsquare Media financial leverage refers to using borrowed capital as a funding source to finance Townsquare Media ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Townsquare Media 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 Townsquare Media'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 Townsquare Media'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 Townsquare Media's total debt and its cash.
Another Deeper Perspective
The entity reported the last year's revenue of 431.16 M. Reported Net Loss for the year was (121.7 M) with profit before taxes, overhead, and interest of 128.39 M.
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