But it's clear that we should definitely closely examine whether it can manage its debt without dilution. This deficit isn't so bad because Flutter Entertainment is worth a massive UK£25.4b, and thus could probably raise enough capital to shore up its balance sheet, if the need arose. So its liabilities outweigh the sum of its cash and (near-term) receivables by UK£7.55b.

Offsetting these obligations, it had cash of UK£2.37b as well as receivables valued at UK£221.8m due within 12 months. LSE:FLTR Debt to Equity History March 30th 2023 A Look At Flutter Entertainment's LiabilitiesĪccording to the last reported balance sheet, Flutter Entertainment had liabilities of UK£3.32b due within 12 months, and liabilities of UK£6.83b due beyond 12 months. On the flip side, it has UK£2.37b in cash leading to net debt of about UK£3.32b. You can click the graphic below for the historical numbers, but it shows that as of December 2022 Flutter Entertainment had UK£5.69b of debt, an increase on UK£3.63b, over one year.

View our latest analysis for Flutter Entertainment How Much Debt Does Flutter Entertainment Carry? The first thing to do when considering how much debt a business uses is to look at its cash and debt together. Having said that, the most common situation is where a company manages its debt reasonably well - and to its own advantage. However, a more usual (but still expensive) situation is where a company must dilute shareholders at a cheap share price simply to get debt under control. If things get really bad, the lenders can take control of the business. When Is Debt Dangerous?ĭebt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy. But the real question is whether this debt is making the company risky. We can see that Flutter Entertainment plc ( LON:FLTR) does use debt in its business. Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin.

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