Cinemark Holdings Inc (CNK)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.47 | 0.43 |
| Debt-to-capital ratio | — | 0.00 | — | 0.88 | 0.75 |
| Debt-to-equity ratio | — | 0.00 | — | 7.67 | 3.02 |
| Financial leverage ratio | — | 16.25 | — | 16.20 | 7.06 |
Cinemark Holdings Inc's solvency ratios reflect its ability to meet its long-term financial obligations. The debt-to-assets ratio has shown fluctuations over the years, decreasing from 0.43 in 2020 to 0.00 in 2022, 2023, and 2024. This indicates that the company's total debt relative to its total assets has decreased significantly in recent years, potentially reducing the financial risk associated with its asset base.
The debt-to-capital ratio provides insight into the company's debt financing relative to its total capital structure. While the data is not available for 2022 and 2024, the ratio increased from 0.75 in 2020 to 0.88 in 2021, suggesting a higher proportion of debt in the company's capital structure during that period.
The debt-to-equity ratio increased substantially from 3.02 in 2020 to 7.67 in 2021, indicating a higher reliance on debt financing compared to equity during that time. Unfortunately, data for 2022 and 2024 is not available to assess the trend further.
The financial leverage ratio, which measures the proportion of the company's assets financed by debt, increased significantly from 7.06 in 2020 to 16.20 in 2021, highlighting the company's increased reliance on debt to support its operations. Given the lack of data for 2022 and 2024, it is difficult to analyze the trend in recent years.
Overall, the data suggests that Cinemark Holdings Inc has experienced fluctuations in its solvency ratios, with a general increase in debt reliance in 2021 but a subsequent decrease in debt levels in the following years. Monitoring these ratios in conjunction with other financial metrics will help to assess the company's long-term financial stability and ability to meet its obligations.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 3.08 | — | — | -1.94 | -6.13 |
Based on the provided data, the interest coverage ratio for Cinemark Holdings Inc has shown significant fluctuations over the years. As of December 31, 2020, the interest coverage ratio was -6.13, indicating that the company's earnings before interest and taxes (EBIT) were insufficient to cover its interest expenses.
By December 31, 2021, the interest coverage ratio had slightly improved to -1.94, but still remained in the negative territory, suggesting continued challenges in meeting interest obligations from operating profits. Unfortunately, data for the subsequent years, December 31, 2022 and December 31, 2023, were not provided (indicated as "—"), making it difficult to assess any potential changes in the company's financial performance during those periods.
However, by December 31, 2024, the interest coverage ratio had improved significantly to 3.08, indicating that Cinemark Holdings Inc's EBIT had become more sufficient to cover its interest expenses. This improvement suggests a positive trend in the company's ability to meet its interest obligations from its operational earnings, but still warrants close monitoring to ensure sustained financial health.
Overall, the data indicates a mixed performance in the company's ability to cover interest payments with operating profits, with notable improvements in recent years, but also underscoring the importance of consistent financial management and monitoring to ensure long-term sustainability.