Is Pandora In A Good Shape In Terms Of Its Financial Health?

-2.14%
Downside
8.38
Market
8.20
Trefis
P: Pandora Media logo
P
Pandora Media

corrected liquidity and solvency analysis

  • The analysis reveals that Pandora’s financial health is in a good shape.
  • The company is capable of paying off its near term obligations using just its cash and the value of its assets that can quickly be turned into cash is more than double the value of its near-term liabilities
  • While this implies good financial health, it can also indicate that Pandora is not investing its assets properly
  • However, considering Pandora’s business model where expenses are extremely high, additional investments may not necessarily bring in returns unless they are made to tweak the company’s operational model
  • Solvency analysis reveals that Pandora isn’t too reliant on debt as it stands at a decent 36% of Equity and also, only 20% of its assets have been created using debt
  • However, negative interest coverage ratio reminds that Pandora is still in deep losses
  • Nevertheless, the Internet radio company’s balance sheet appears healthy enough to keep potential suitors interested – (Recently, activist investor Corvex started pushing Pandora’s management to consider a sale)

Have more questions about Pandora? See the links below:

Relevant Articles
  1. Can Pandora End The Year On A Strong Note After Solid Q3?
  2. Is SiriusXM Paying The Right Price For Pandora?
  3. How Will Subscriber Growth Drive Pandora In The Second Half Of 2018?
  4. Can Subscriber Growth Drive Pandora’s Q2?
  5. Spotify Has Seen A Big Rally, But Still Faces Some Challenges
  6. How Much Can Pandora Benefit From Snapchat Partnership?

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Pandora
Interactive Institutional Research (Powered by Trefis):

Global Large CapU.S. Mid & Small CapEuropean Large & Mid Cap |More Trefis Research