The Impact Of COVID-19 On The Budgeting Strategies Of Entertainment Companies

Abstract

The COVID-19 pandemic resulted in unprecedented disruptions across various sectors, profoundly impacting the entertainment sector. This study investigates the detailed effects of the pandemic on the financial strategies of three leading entertainment companies: The Walt Disney Company; Live Nation Entertainment Incorporated; Six Flags Entertainment Corporation. This research charts a comparative analysis of stock performance pre-pandemic, during its peak, and in the current landscape, compared with the S&P 500 index and the S&P Small Cap 600 Index, as provided by Bloomberg. This study aims to offer essential insight into the enduring repercussions of the COVID-19 pandemic on prominent companies, and their strategies for navigating these unprecedented challenges. This research also reveals the complex financial paths of these entertainment companies following the closure of their theme parks and venues. This uncovered the underlying dynamics that govern their weakening financial status. In addition to this analysis, this study also compared a comprehensive array of financial metrics, including an analysis of earnings per share, revenues, liquidity analysis, profitability indicators, capital structure, asset turnover ratios, and market value. The results indicated the financial weakening amidst the pandemic-induced challenges. The research findings demonstrate a substantial downturn in stock values and financial metrics during this period across these entertainment companies. The pandemic has created an enduring impact on their fiscal viability and a damper on strategic initiatives. The research indicated weakening trends and financial troubles for the long-term sustainability of these entertainment companies.