Final Evaluation Live Nation Entertainment

Financial Statements and Ratio Analysis

  • Balance sheet shows a good balance between assets liabilities and equity
  • Income statement causes more concern with the consistent net loss
  • Ratios Reflect this Drop In profitability

Horizontal Analysis

  • Cash and Cash Equivalents decreased in 2015, showing that Live Nation is continuing to purchase new companies
  • Revenue has Increase all three years, however direct operating expenses have increased at a similar rate

Common Sized Analysis

The Common Size analysis also helped to identify anomalies on the Financial Statements

Projections

  • The given information suggests a steady rise in Revenue at 6%, which should be enough to allow the company to turn a net profit
  • The Balance reflects the growth through a increase in assets such as cash and cash equivalents, and land buildings and improvements

Conclusion

  • Live Nation Entertainment is generally stable but could be doing better
  • Expenses should be lowered
  • Debt to equity shows that more debt is being added than equity further widening the gap

Credits:

Created with images by Unsplash - "concert performance audience" • spinheike - "concert live concert commerzbank arena" • Pexels - "audience concert light" • Unsplash - "audience concert music"

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