AMC’s financial indicators and payment behavior are potential red flags
- AMC Entertainment Holdings Inc. has a debt-to-equity ratio of -186.5%
- AMC’s Days Beyond Terms (DBT) jumped from 9 days in March to 21 days in August
- High negative debt-to-equity and growing DBT are red flags for financial trouble
- AMC reports third-quarter results after market close on Nov. 8
AMC Entertainment Holdings Inc. is facing concerns over its debt-to-equity ratio and late payments, according to credit-monitoring company Creditsafe. With a debt-to-equity ratio of -186.5%, AMC’s financial risk is considered high. Additionally, the company’s Days Beyond Terms (DBT) increased from 9 days in March to 21 days in August, indicating potential payment issues. These indicators are seen as red flags for financial trouble. AMC will be reporting its third-quarter results on Nov. 8.
Factuality Level: 7
Factuality Justification: The article provides information from a credit-monitoring and risk-management company about AMC Entertainment Holdings Inc.’s debt-to-equity ratio and late payments, which could be financial warning signs. It also mentions the company’s second-quarter earnings report and its Days Beyond Terms (DBT) score. The article acknowledges that there are concerns about AMC but also highlights positive aspects such as revenue growth. It includes statements from the head of brand and spokesperson for Creditsafe and mentions the company’s CEO’s comments about cash challenges. The article provides some financial data and mentions recent actions taken by AMC to address debt and liquidity concerns. Overall, the article presents a mix of potential warning signs and positive developments, but it lacks in-depth analysis or additional sources to provide a comprehensive assessment of AMC’s financial situation.
Noise Level: 4
Noise Justification: The article provides some relevant information about AMC Entertainment Holdings Inc.’s financial situation, including its debt-to-equity ratio and late payments. However, it also includes some repetitive information and mentions unrelated topics such as Taylor Swift’s concert film. The article lacks scientific rigor and intellectual honesty as it does not provide a thorough analysis or evidence to support its claims. Overall, the article contains some noise and filler content.
Financial Relevance: Yes
Financial Markets Impacted: The article pertains to AMC Entertainment Holdings Inc., a movie-theater chain and meme-stock darling. It discusses the company’s debt-to-equity ratio and late payments, which could be financial warning signs.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article focuses on financial indicators and risks associated with AMC Entertainment Holdings Inc., without mentioning any extreme events.
Public Companies: AMC Entertainment Holdings Inc. (AMC)
Key People: Ragini Bhalla (Head of Brand and Spokesperson for Creditsafe), Adam Aron (CEO of AMC Entertainment Holdings Inc.)
Reported publicly:
www.marketwatch.com 
