/biz/ - Business & Finance

>>51199388
PRTY
Party City cash flow
>pic related
>negative cash flow
https://www.macrotrends.net/stocks/charts/PRTY/party-city-holdco/cash-flow-statement
even in the best years pre-covid they would not be able to pay off their debt
Party City has more than $2 billion in debt.
https://simplywall.st/stocks/us/retail/nyse-prty/party-city-holdco/news/party-city-holdco-nyseprty-use-of-debt-could-be-considered-r
>The latest balance sheet data shows that Party City Holdco had liabilities of US$570.1m due within a year, and liabilities of US$2.06b falling due after that.
https://www.nasdaq.com/articles/heres-why-party-city-holdco-nyse:prty-is-weighed-down-by-its-debt-load
>Zooming in on the latest balance sheet data, we can see that Party City Holdco had liabilities of US$665.6m due within 12 months and liabilities of US$2.07b due beyond that.
>But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash. So it is important to check how much of its earnings before interest and tax (EBIT) converts to actual free cash flow. Over the last year, Party City Holdco recorded negative free cash flow, in total.
>how much of its earnings converts to actual free cash flow
>negative free cash flow
$725M is due in 2026
https://www.retaildive.com/news/party-city-eyes-725m-bond-sale-to-buy-it-time/594853/
they have between $570-665 million due within 12 months
even if the stock price does rise, you are playing a game of "can I sell before the company does?" as if the stock rises they would 100% do a share offering to (attempt) pay off debt
the stock could rise on meme energy - but then immediately crash 25%+ premarket when it is announced they are diluting
for perspective they had $26 million in EBITDA last quarter
even if this quarter is great, Halloween is great, better than any previous year, it is still virtually impossible for them to pay off their debt due within 12 months, let alone their debt due within 4 years