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Madison Square Garden Entertainment Financial Strength

: 4 (As of Mar. 2022)
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Madison Square Garden Entertainment has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Madison Square Garden Entertainment's Interest Coverage for the quarter that ended in Mar. 2022 was 1.96. Madison Square Garden Entertainment's debt to revenue ratio for the quarter that ended in Mar. 2022 was 1.17. As of today, Madison Square Garden Entertainment's Altman Z-Score is 0.35.


Competitive Comparison

For the Entertainment subindustry, Madison Square Garden Entertainment's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Madison Square Garden Entertainment Financial Strength Distribution

For the Media - Diversified industry and Communication Services sector, Madison Square Garden Entertainment's Financial Strength distribution charts can be found below:

* The bar in red indicates where Madison Square Garden Entertainment's Financial Strength falls into.



Madison Square Garden Entertainment Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Madison Square Garden Entertainment's Interest Expense for the months ended in Mar. 2022 was $-5.8 Mil. Its Operating Income for the months ended in Mar. 2022 was $11.4 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2022 was $2,024.4 Mil.

Madison Square Garden Entertainment's Interest Coverage for the quarter that ended in Mar. 2022 is

Interest Coverage=-1*Operating Income (Q: Mar. 2022 )/Interest Expense (Q: Mar. 2022 )
=-1*11.414/-5.831
=1.96

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Madison Square Garden Entertainment's Debt to Revenue Ratio for the quarter that ended in Mar. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(133.001 + 2024.391) / 1840.508
=1.17

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Madison Square Garden Entertainment has a Z-score of 0.35, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.35 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Madison Square Garden Entertainment  (NYSE:MSGE) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Madison Square Garden Entertainment has the Financial Strength Rank of 4.


Madison Square Garden Entertainment Financial Strength Related Terms

Thank you for viewing the detailed overview of Madison Square Garden Entertainment's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Madison Square Garden Entertainment Business Description

Madison Square Garden Entertainment logo
Traded in Other Exchanges
Address
Two Penn Plaza, New York, NY, USA, 10121
Madison Square Garden Entertainment Corp is engaged in the entertainment business. The firm offers marquee entertainment content, popular dining and nightlife, and a premier music festival. The company's portfolio of venues includes Madison Square Garden, Hulu Theater at Madison Square Garden, Radio City Music Hall, the Beacon Theatre, the Forum in Inglewood, CA and The Chicago Theatre. The firm generates its revenue from ticket sales to its audiences for live events.
Executives
Zeppetella Courtney M officer: SVP, Controller & CAO TWO PENNSYLVANIA PLAZA NEW YORK NY 10121
Byrnes David F. officer: EVP & Chief Financial Officer C/O CBS CORPORATION 51 WEST 52ND STREET NEW YORK NY 10019
Haughton Jamal H officer: EVP & General Counsel TWO PENNSYLVANIA PLAZA NEW YORK NY 10121
Greenberg Andrea officer: President/CEO-MSG Networks 11 PENNSYLVANIA PLAZA NEW YORK NY 10001
Litvin Joel M. director TWO PENNSYLVANIA PLAZA NEW YORK NY 10011
Packman Scott S officer: EVP & General Counsel TWO PENNSYLVANIA PLAZA NEW YORK NY 10121
Dolan Quentin F director 11 PENNSYLVANIA PLAZA NEW YORK NY 10001
Tese Vincent director 245 PARK AVE 19TH FL. NEW YORK NY 10167
Blank Matthew director TWO PENNSYLVANIA PLAZA NEW YORK NY 10121
Dolan Ryan Thomas director TWO PENNSYLVANIA PLAZA NEW YORK NY 10121
Lhota Joseph director TWO PENNSYLVANIA PLAZA NEW YORK NY 10121
Dolan Charles P director 2 PENN PLAZA NEW YORK NY 10121
Sykes John L director 2 PENNSYLVANIA PLAZA NEW YORK NY 10121
Thomas Isiah Iii director TWO PENNSYLVANIA PLAZA NEW YORK NY 10121
Fitzpatrick Mark H officer: EVP & Chief Financial Officer TWO PENNSYLVANIA PLAZA NEW YORK NY 10121

Madison Square Garden Entertainment Headlines

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By Zacks 2021-08-24

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