BUSI 690: Financial Analysis Report of Clear Channel Communication

This report presents a detailed financial analysis of Clear Channel Communication over a three-year period (2015-2017). It begins with an overview of key financial statements, including the balance sheet, income statement, and cash flow statement, highlighting changes and deltas to assess trends in assets, liabilities, equity, revenue, and expenses. The report then delves into key ratio analysis, focusing on liquidity ratios such as the current ratio, quick ratio, and cash ratio, with calculations and percentage changes. The analysis aims to provide a comprehensive understanding of the company's financial health, performance, and stability, offering insights into its ability to meet short-term obligations and generate profits. The data is presented in a tabular format with calculations of percentage changes to facilitate easy comparison and trend identification. The report is designed to assist students in understanding financial statement analysis and its application in business decision-making.

BUSI 690

TABLE OF CONTENTS
MAIN BODY...................................................................................................................................1
1. Key Financial Statements with changes and deltas.................................................................1
2. Key Ratio Analysis with changes and deltas..........................................................................9
REFERENCES..............................................................................................................................11

MAIN BODY
1. Key Financial Statements with changes and deltas
Financial Statements of Clear Channel Communication for last three years
Balance sheet 2017 2016 2015
Amount % change Amount % change Amount % change
CURRENT ASSETS
Cash and cash
equivalents 267109
2.17862650
99 845030
6.56984739
91 772678
5.65107512
08
Accounts receivable 1508370
12.3027485
738 1364404
10.6078199
245 1442038
10.5465214
035
Prepaid expenditures 209330
1.70736248
99 184586
1.43509917
05 189055
1.38267688
09
Assets held for sale 0 55602
0.43228838
63 295075
2.15806712
66
Other CA 82538
0.67320634
98 55065
0.42811337
71 79269
0.57974353
32
Total Current
Assets 2067347
16.8619439
235 2504687
19.4731682
575 2778115
20.3180840
65
PPE 0 0 0
Structures 1180882
9.63165161
16 1196676
9.30378650
01 1391880
10.1796847
317
Other property, plant
and equipment (PPE) 703832
5.74067910
01 751486
5.84257167
51 820676
6.00211436
82
Indefinite-lived
intangibles - licenses 2451813
19.9977716
933 2413899
18.7673195
827 2413483
17.6513033
058
Indefinite-lived 977152 7.96996451 960966 7.47121401 971327 7.10391889
1

intangibles - permits 43 11 49
Other intangibles 550056
4.48643281
79 740508
5.75722111
39 953660
6.97470912
81
Goodwill 4051082
33.0419216
094 4066575
31.6163653
209 4128887
30.1971204
075
Other assets 278267
2.26963472
98 227450
1.76835353
88 215087
1.57306509
89
Total Assets 12260431 100 12862247 100 13673115 100
CURRENT
LIABILITIES 0
Accounts payable 163449
1.33314236
67 146772
1.14110699
32 153276
1.12100278
54
Accrued expenses 764275
6.23367155
69 742617
5.77361793
78 834416
6.10260353
99
Accrued interest 268102
2.18672573
58 264170
2.05384020
38 279100
2.04123200
89
Deferred income 186404
1.52037069
5 200103
1.55573905
55 210924
1.54261848
89
long-term debt
(Current portion) 14972367
122.119418
151 342908
2.66600384
83 181512
1.32751022
72
Total Current
Liabilities 16354597
133.393328
5053 1696570
13.1903080
387 1659228
12.1349670
503
Long-term debt 5676814
46.3019122
248 20022080
155.665491
4184 20539099
150.215214
3092
Deferred income
taxes 959390
7.82509195
64 1457095
11.3284638
368 1554898
11.3719368
264
Other long-term 597085 4.87001639 571977 4.44694461 526571 3.85114145
2

obligations 67 24 53
Non controlling
interest 42764
0.34879687
35 135183
1.05100609
56 177615
1.29900904
07
Common stock 500
0.00407816
01 500
0.00388734
57 500
0.00365681
12
Additional paid-in
capital 2069684
16.8810052
436 2068047
16.0784270
431 2066622
15.1144929
301
Accumulated deficit -13127843
-
107.074889
9447 -12733329
-
98.9977023
455 -12437011
-
90.9596021
097
Accumulated other
comprehensive loss -312560
-
2.54933941
56 -355876
-
2.76682604
52 -414407
-
3.03081631
36
Total Shareholder's
Deficit -11327455
-
92.3903490
832 -10885475
-
84.6312079
064 10606681
77.5732596
413
Total Liabilities
and Shareholder's
Deficit 12260431 100 12862247 100 13673115 100
Income Statement 2017 2016 2015
Amount % change Amount % change Amount % change
Revenue 6170994 100 6260062 100 6241516 100
Operating expenses:
Direct operating
expenses 2461722
39.8918229
381 2398776
38.3187259
168 2471113
39.5915511
552
3

Admin and selling
expenses 1851646
30.0056360
45 1725899
27.5699985
08 1704352
27.3066992
058
Corporate expense 311898
5.05425868
18 341072
5.44838054
32 315143
5.04914190
72
Depreciation and
amortization 601295
9.74389215
09 635227
10.1472956
658 673991
10.7985143
353
Impairment charges 10199
0.16527321
21 8000
0.12779426
15 21631
0.34656644
32
Other operating
income 35704
0.57857777
86 353556
5.64780348
82 94001
1.50606038
66
Operating income 969938
15.7176947
506 1504644
24.0356085
93 1149287
18.4135873
4
Interest expense 1865584
-
473.629506
6402 1849982
-
624.230501
8862 1805496
-
239.210147
6733
Loss on investment -4872
1.23689040
88 -12907
4.35514674
62 -4421
0.58573824
75
Equity in loss of non
consolidated
affiliates -2855
0.72481981
06 -16733
5.64613546
95 -902
0.11950597
13
Gain on debt 1271
-
0.32267810
13 157556
-
53.1633610
247 -2201
0.29161046
88
Other income -15322
3.88990862
95 -73102
24.6664552
136 13056
-
1.72978931
44
Loss before income
taxes -917424
232.913166
3328 -290524
98.0301118
227 -650677
86.2081894
713
4

Income tax benefit 457406
-
116.125019
3581 50474
-
17.0311983
318 -86957
11.5209320
936
Consolidated net
loss -460018
116.788146
9747 -240050
80.9989134
909 -737634
97.7291215
649
Less amount
attributable to non
controlling interest -66127
16.7881469
747 56312
-
19.0010865
091 17140
-
2.27087843
51
Net loss attributable
to the Company -393891 100 -296362 100 -754774 100
Cash Flow Statement 2017 2016 2015
Amount % change Amount % change Amount % change
Cash flows from
operating activities:
Net Loss -460018
91.3205224
918 -240050
1716.85023
60177 -737634 954.1990065197
Impairment charges 10199
-
2.02465557
63 8000
-
57.2164211
129 21631 -27.981734451
Depreciation and
amortization 601295
-
119.366141
2634 635227
-
4543.17694
17823 673991 -871.8707958191
Deferred taxes -488217
96.9184499
94 -98127
701.809469
3177 27848 -36.0240091069
Provision for doubtful
accounts
38944 -
7.73097232
27390 -
195.894721
30579 -39.5568146538
5

7 7852
Amortization of
deferred financing
charges and note
discounts 57474
-
11.4094572
597 69951
-
500.293234
1582 63838 -82.5804615544
Share-based
compensation 12078
-
2.39766546
23 13133
-
93.9279073
094 11067 -14.3162061472
Gain on disposal of
operating and other
assets -44461
8.82618017
23 -365710
2615.57717
0648 -107186 138.6551795509
Loss on investment 4872
-
0.96716560
13 12907
-
92.3115434
13 4421 -5.718979613
Equity in loss of non
consolidated affiliates 2855
-
0.56676063
05 16733
-
119.675296
8102 902 -1.166821898
(Gain) loss on
extinguishment of debt -1271
0.25231270
1 -157556
1126.84880
56072 2201 -2.8472006623
Barter and trade
income -42210
8.37932266
65 -38323
274.088113
2885 -14372 18.5915347201
Other reconciling
items -28448
5.64735776
39 71443
-
510.964096
6958 -14118 18.2629618131
Changes in operating
assets and liabilities: -0 -0 -0
Increase in accounts
receivable -149347
29.6476356
851 -14469
103.483049
6352 -121574 157.2674117769
6

Increase in prepaid
expenses -28433
5.64438003
73 -2753
19.6896009
155 -20631 26.6881403291
Increase (decrease) in
accrued expenses 4133
-
0.82046293
72 -2862
20.4691746
531 -15841 20.4918244851
Increase in accounts
payable 15736
-
3.12383372
37 3065
-
21.9210413
389 27385 -35.4250750285
Increase in accrued
interest 41006
-
8.14031047
76 20809
-
148.827063
3672 59608 -77.1085584187
Increase (decrease) in
deferred income -26533
5.26720133
4 23661
-
169.224717
4939 23516 -30.4201593708
Changes in other
operating assets and
liabilities -23394
4.64406241
31 3549
-
25.3826348
162 7065 -9.1392424713
Net cash used for
operating activities -503740 100 -13982 100 -77304 100
Cash flows from
investing activities:
Purchases of other
investments -26890
11.3906409
512 -29031
-
5.68215848
04 -29006 -95.9383475557
Proceeds from sale of
other investments 5071
-
2.14808256
84 5367
1.05046827
75 579 1.9150625124
Purchase of PPE -291966 123.677198 -314717 - -296380 -980.2870940001
7

8088
61.5987003
709
Proceeds from disposal
of assets 82987
-
35.1534072
377 856981
167.734554
6715 414278 1370.2388039955
Purchases of other
operating assets -1213
0.51382846
69 -4414
-
0.86394018
57 -29159 -96.444400344
Change in other -4060
1.71982157
91 -3271
-
0.64022391
2 -30078 -99.4840246081
Net cash provided by
(used for) investing
activities -236071 100 510915 100 30234 100
Cash flows from
financing activities:
Draws on credit
facilities 100000
66.0785674
167 100000
-
23.9102314
271 350000 92.7373413529
Payments on credit
facilities -25909
-
17.1202960
32 -2100 0.50211486 -123849 -32.8155056835
Proceeds from long-
term debt 156000
103.082565
17 6856
-
1.63928546
66 1172777 310.7434885138
Payments on long-term
debt -9946
-
6.57217431
53 -421263
100.724958
2169 -931420 -246.7926128084
8

Payments to
repurchase non
controlling interests -1227
-
0.81078402
22 -0 -42797 -11.3396571368
Dividends and other
payments to non
controlling interests -46477
-
30.7113357
782 -89631
21.4309795
305 -30871 -8.1796984712
Change in other -21106
-
13.9465424
39 -12093
2.89146428
65 -16430 -4.3533557669
Net cash provided by
(used for) financing
activities 151335 100 -418231 100 377410 100
Effect of exchange rate
changes on cash 10555
3.95157033
27 -6350
-
0.75145261
11 -14686 -1.9006623716
Net increase (decrease)
in cash and cash
equivalents -577921
-
216.361485
3861 72352
8.56206288
53 315654 40.8519460888
Cash and cash
equivalents at
beginning of period 845030
316.361485
3861 772678
91.4379371
147 457024 59.1480539112
Cash and cash
equivalents at end of
period 267109 100 845030 100 772678 100
2. Key Ratio Analysis with changes and deltas
9

Key Ratio Analysis
Liquidity Ratios 2017
Inc/
(Dec)
Change
(%) 2016
Inc/
(Dec)
Change
(%) 2015
Inc/
(Dec) Change (%)
Current Ratio
0.12640
77005
1.36930
82248
10.8324
747543
1.49571
59254
0.17862
59975
0.11942
50823
1.67434
19229
0.17862
59975 0.1066843009
Quick Ratio
0.11360
82412
1.27187
90529
11.1953
062557
1.38548
72941
0.17491
30849
0.12624
66178
1.56040
0379
0.17491
30849 0.1120950028
Cash Ratio
0.01633
23499
0.48829
15127
29.8971
989283
0.50462
38625
-
0.03893
86162
-
0.07716
36441
0.46568
52464
-
0.03893
86162 -0.0836157393
Profitability
Ratios
Gross Margin
0.84282
30525
-
0.08317
91384
-
0.09869
11051
0.75964
39141
0.05622
02125
0.07400
86394
0.81586
41266
0.05622
02125 0.0689087934
Operating Margin
0.15717
69475
0.08317
91384
0.52920
69845
0.24035
60859
-
0.05622
02125
-
0.23390
38444
0.18413
58734
-
0.05622
02125 -0.3053191727
Pre-Tax Margin
-
0.14866
71353
0.10225
80103
-
0.68783
19817
-
0.04640
9125
-
0.05784
07079
1.24632
18784
-
0.10424
98329
-
0.05784
07079 0.5548278234
Profit Margin
-
0.06382
94252
0.01648
77216
-
0.25830
91029
-
0.04734
17036
-
0.07358
62888
1.55436
50352
-
0.12092
79925
-
0.07358
62888 0.6085132758
Pre-Tax ROE
0.08099
11847
-
0.05430
20416
-
0.67046
85429
0.02668
91431
0.03465
68142
1.29853
60412
0.06134
59573
0.03465
68142 0.5649404742
After Tax ROE 0.03477 - - 0.02722 0.04393 1.61373 0.07116 0.04393 0.6174063935
10