Tag

Balance Sheets

All articles tagged with #balance sheets

finance2 years ago

Corporate America's Debt Crisis: Ignoring Warnings, Stocks Break Down Under Higher Rates

As interest rates rise, companies with high levels of debt on their balance sheets may face increasing pressure. Refinancing corporate debt will start impacting profits in 2024, with $903 billion in U.S. corporate debt coming due that year. Higher interest rates will increase borrowing costs, eating into future earnings and cash flow. CNBC has identified stocks that meet certain criteria, including a high debt-to-equity ratio, falling earnings, and trading near a 52-week low. Companies such as General Motors and Whirlpool are among those that may be vulnerable.

finance2 years ago

US Banking Giants Face Mounting Losses as Banking Crisis Persists

The four largest banks in the US - Bank of America, Wells Fargo, JPMorgan Chase, and Citigroup - have a combined total of $205 billion in unrealized losses on their balance sheets, primarily due to bad bets in the bond market. Bank of America holds the largest amount of unrealized losses at $100 billion, followed by Wells Fargo and JPMorgan Chase with $40 billion each, and Citigroup with $25 billion. Despite these losses, the Federal Reserve's stress test indicates that these banks would still meet their minimum capital requirements in a hypothetical recession.

entertainment2 years ago

Streaming Services Engage in Massive Content Purge, Including Classic Disney Movies

Streaming services are increasingly removing shows from their platforms, a trend driven by financial considerations. One reason is the cost of paying residuals to guild members, which can be eliminated by removing the show entirely. Additionally, shows may be licensed to free, ad-supported channels, generating income for the studios. Removing a show from a platform can also result in a write-down of its value, creating a tax deduction for the company. These actions reflect a shift in the industry towards cost-cutting and financial stability, as companies realize the limitations of subscription fees and the need to appease shareholders. However, this trend may inconvenience viewers and lead to a decline in streaming subscriptions.