Cinemark Holdings Inc (CNK)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.47 | 0.43 | 0.30 |
| Debt-to-capital ratio | 0.00 | — | 0.88 | 0.75 | 0.55 |
| Debt-to-equity ratio | 0.00 | — | 7.67 | 3.02 | 1.23 |
| Financial leverage ratio | 16.25 | — | 16.20 | 7.06 | 4.06 |
Cinemark Holdings Inc's solvency ratios indicate its ability to meet its long-term financial obligations and manage its debt levels over the years. The trend analysis of these ratios from 2019 to 2023 provides insights into the company's financial health.
- Debt-to-assets ratio has shown some fluctuations, ranging from 0.33 in 2019 to 0.51 in 2023. This ratio suggests that over half of the company's assets are financed through debt in the latest year.
- Debt-to-capital ratio has also seen an upward trend, increasing from 0.57 in 2019 to 0.89 in 2023. This indicates that a larger portion of the company's capital structure is comprised of debt in the latest year.
- Debt-to-equity ratio, which measures the proportion of debt financing relative to equity, has been quite volatile, peaking at 8.11 in 2021 and standing at 8.03 in 2023. This suggests that the company relies heavily on debt financing.
- Financial leverage ratio has also increased over the years, indicating a significant rise in financial leverage from 2019 to 2023, reaching 15.61.
Overall, Cinemark Holdings Inc's solvency ratios show a trend of increasing leverage and reliance on debt financing, which could potentially increase the company's financial risk. Investors and stakeholders may need to closely monitor the company's ability to manage its debt levels and meet its long-term obligations to ensure its financial stability in the future.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | — | — | -1.94 | -6.13 | 3.71 |
Based on the interest coverage ratios of Cinemark Holdings Inc for the years 2019 to 2023, it is evident that there have been significant fluctuations in the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).
In 2019, the interest coverage ratio was 3.98, indicating that the company generated almost four times the EBIT required to cover its interest expenses, reflecting a healthy financial position. However, there was a drastic decline in 2020, with the interest coverage ratio falling to -4.10, implying that the company's EBIT was insufficient to cover its interest obligations, raising concerns about its financial health.
The situation improved in 2021, but the interest coverage ratio remained negative at -1.50, indicating ongoing financial stress. However, by 2022, there was a significant recovery, with the interest coverage ratio increasing to 0.43. This suggests that although the company's EBIT improved, it was still not enough to fully cover its interest expenses.
Finally, in 2023, there was a substantial improvement in the interest coverage ratio to 3.18. This indicates that Cinemark Holdings Inc generated more than three times the EBIT required to cover its interest payments, signaling a positive turn in its financial performance.
Overall, the fluctuating trend in Cinemark Holdings Inc's interest coverage ratio highlights the company's varying ability to meet its interest obligations with its operating earnings over the years, indicating changes in its financial stability and performance.