Six Flags Entertainment Corporation (NYSE:FUN) is one of the stocks that received Jim Cramer’s latest comments. Cramer noted the company’s significant leverage ratio, as he remarked:
“What went wrong? In a word, everything. Six Flags has been hit with macroeconomic headwinds and some very company-specific problems, creating a perfect storm of poor attendance… What makes this so much more worse? Six Flags has a terrible balance sheet, that’s why the stock’s really obliterated. Both Six Flags and Cedar Fair went into a merger process with a fair amount of debt. And the current Six Flags now has a sky-high leverage ratio of 6.3. Anything above three is considered high. Anything above four is very high. And anything above that is, well, let’s just say, precarious…
Pixabay/Public Domain
Six Flags Entertainment Corporation (NYSE:FUN) runs a collection of amusement parks, water parks, and resort properties.
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Disclosure: None. This article is originally published at Insider Monkey.
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