Lions Gate Entertainment Corp.’S Financial Stability

Lions Gate Entertainment Corp.’s current ratio went from 1.39:1 in 2012 to 1.47:1 in 2013, a 0.08 increase. This shows that Lions Gate Entertainment is financially stable enough to pay off their short-term debt. In 2012, 0.97 percent of Lions Gate Entertainment was financed by creditors, while in 2013 it decreased by 0.10 percent, so 0.87 percent of Lions Gate Entertainment was financed by creditors. Furthermore, this company’s financial stability is at a well balance because the company is only financed by about 1% by their creditors, the rest of the company is controlled by the company. Revenues decreased from $2,733,527,000 to $2,011,377,000, a 65.58% difference. Lions Gate Entertainment Corporation’s total assets decreased by 3.74% in 2013. Their past performance was alright; in 2012 their assets were $2,787,995 (in thousands) while their liabilities were $2,698,210 (in thousands). In 2012, they had $89,785 more total assets than total liabilities. In order for them to have a good financial stability, their total assets should be more than their total liabilities. So in 2013, when their assets decreased by $27,126 and their total liabilities decreased by $293,867, the difference between the total assets and total liabilities was $356,526. LionsGate Entertainment Corp.’s future potential is high and they will be doing well in years to come. LionsGate Entertainment is in a healthy, stable financial position, although they could be doing better, as they mostly have decreases in their assets and total equity.