There are some notable exceptions, but movie sequels tend to be worse than the originals. And after a disappointing 2016, Village Roadshow’s latest result appears to follow this pattern, albeit only just (see Table 1).
The company’s net debt is particularly concerning. Having grown steadily in recent years, net debt is now 3.3 times earnings before interest, tax, depreciation and amortisation (or EBITDA).
Debt too high