Starz Entertainment（NASDAQ:STRZ）有债务但没有盈利，你是否应该担心？

Explore Starz Entertainment's Fair Values from the Community and select yours

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the permanent loss of capital.' So it might be obvious that you need to consider debt, when you think about how risky any given stock is, because too much debt can sink a company. As with many other companies Starz Entertainment Corp. (NASDAQ:STRZ) makes use of debt. But the more important question is: how much risk is that debt creating?

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When Is Debt A Problem?

Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers. However, a more common (but still painful) scenario is that it has to raise new equity capital at a low price, thus permanently diluting shareholders. Of course, debt can be an important tool in businesses, particularly capital heavy businesses. When we examine debt levels, we first consider both cash and debt levels, together.

What Is Starz Entertainment's Debt?

You can click the graphic below for the historical numbers, but it shows that Starz Entertainment had US$699.9m of debt in June 2025, down from US$751.2m, one year before. On the flip side, it has US$51.6m in cash leading to net debt of about US$648.3m.

A Look At Starz Entertainment's Liabilities

According to the last reported balance sheet, Starz Entertainment had liabilities of US$677.1m due within 12 months, and liabilities of US$702.2m due beyond 12 months. On the other hand, it had cash of US$51.6m and US$55.7m worth of receivables due within a year. So it has liabilities totalling US$1.27b more than its cash and near-term receivables, combined.

The deficiency here weighs heavily on the US$204.7m company itself, as if a child were struggling under the weight of an enormous back-pack full of books, his sports gear, and a trumpet. So we'd watch its balance sheet closely, without a doubt. After all, Starz Entertainment would likely require a major re-capitalisation if it had to pay its creditors today. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately the future profitability of the business will decide if Starz Entertainment can strengthen its balance sheet over time. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.

Check out our latest analysis for Starz Entertainment

In the last year Starz Entertainment had a loss before interest and tax, and actually shrunk its revenue by 3.9%, to US$1.3b. That's not what we would hope to see.

Caveat Emptor

Over the last twelve months Starz Entertainment produced an earnings before interest and tax (EBIT) loss. Indeed, it lost US$17m at the EBIT level. Reflecting on this and the significant total liabilities, it's hard to know what to say about the stock because of our intense dis-affinity for it. Sure, the company might have a nice story about how they are going on to a brighter future. But the reality is that it is low on liquid assets relative to liabilities, and it lost US$259m in the last year. So we think buying this stock is risky. There's no doubt that we learn most about debt from the balance sheet. But ultimately, every company can contain risks that exist outside of the balance sheet. For instance, we've identified 2 warning signs for Starz Entertainment that you should be aware of.

Of course, if you're the type of investor who prefers buying stocks without the burden of debt, then don't hesitate to discover our exclusive list of net cash growth stocks, today.