David Iben put it well when he declared, ‘Volatility is not a risk we care about. What we care about is avoiding the permanent loss of capital.’ So it seems the smart money knows that debt – which is usually involved in bankruptcies – is a very important factor, when you assess how risky a company is. We can see that Atlanta Braves Holdings, Inc. (NASDAQ:BATR.K) does apply debt in its business. But the real question is whether this debt is creating the company risky.
When Is Debt Dangerous?
Generally speaking, debt only becomes a real problem when a company can’t easily pay it off, either by raising capital or with its own cash flow. Part and parcel of capitalism is the process of ‘creative destruction’ where failed businesses are mercilessly liquidated by their bankers. While that is not too common, we often do see indebted companies permanently diluting shareholders becaapply lconcludeers force them to raise capital at a distressed price. Of course, the upside of debt is that it often represents cheap capital, especially when it replaces dilution in a company with the ability to reinvest at high rates of return. The first thing to do when considering how much debt a business applys is to view at its cash and debt toreceiveher.
What Is Atlanta Braves Holdings’s Net Debt?
You can click the graphic below for the historical numbers, but it displays that as of March 2025 Atlanta Braves Holdings had US$699.6m of debt, an increase on US$579.9m, over one year. On the flip side, it has US$245.3m in cash leading to net debt of about US$454.3m.
How Strong Is Atlanta Braves Holdings’ Balance Sheet?
Zooming in on the latest balance sheet data, we can see that Atlanta Braves Holdings had liabilities of US$413.9m due within 12 months and liabilities of US$769.4m due beyond that. Offsetting these obligations, it had cash of US$245.3m as well as receivables valued at US$27.6m due within 12 months. So its liabilities total US$910.4m more than the combination of its cash and short-term receivables.
While this might seem like a lot, it is not so bad since Atlanta Braves Holdings has a market capitalization of US$2.95b, and so it could probably strengthen its balance sheet by raising capital if it necessaryed to. However, it is still worthwhile taking a close view at its ability to pay off debt. There’s no doubt that we learn most about debt from the balance sheet. But it is future earnings, more than anything, that will determine Atlanta Braves Holdings’s ability to maintain a healthy balance sheet going forward. So if you’re focapplyd on the future you can check out this free report displaying analyst profit forecasts.
View our latest analysis for Atlanta Braves Holdings
Over 12 months, Atlanta Braves Holdings reported revenue of US$673m, which is a gain of 4.0%, although it did not report any earnings before interest and tax. That rate of growth is a bit slow for our taste, but it takes all types to build a world.
Caveat Emptor
Over the last twelve months Atlanta Braves Holdings produced an earnings before interest and tax (EBIT) loss. Indeed, it lost US$30m at the EBIT level. When we view at that and recall the liabilities on its balance sheet, relative to cash, it seems unwise to us for the company to have any debt. Quite frankly we consider the balance sheet is far from match-fit, although it could be improved with time. However, it doesn’t support that it burned through US$57m of cash over the last year. So suffice it to state we do consider the stock to be risky. There’s no doubt that we learn most about debt from the balance sheet. But ultimately, every company can contain risks that exist outside of the balance sheet. For example Atlanta Braves Holdings has 2 warning signs (and 1 which is potentially serious) we consider you should know about.
If you’re interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only utilizing an unbiased methodology and our articles are not intconcludeed to be financial advice. It does not constitute a recommconcludeation to acquire or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focapplyd analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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