Cinemark Holdings Inc (CNK)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | 2,476,300 | 2,377,160 | 1,771,340 |
| Total stockholders’ equity | US$ in thousands | 286,600 | -485,200 | 322,900 | 787,973 | 1,435,810 |
| Debt-to-capital ratio | 0.00 | — | 0.88 | 0.75 | 0.55 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $286,600K)
= 0.00
The debt-to-capital ratio of Cinemark Holdings Inc has shown a fluctuating trend over the past five years. In 2019, the ratio was at a relatively lower level of 0.57, indicating a lower proportion of debt in the company's capital structure. Subsequently, there was an upward movement in the ratio in 2020 to 0.76, implying an increased reliance on debt financing.
The ratio further increased in 2021 and 2023 to 0.89, suggesting a higher proportion of debt in the company's capital structure compared to previous years. This could indicate that Cinemark Holdings Inc has taken on more debt relative to its total capital, which may pose higher financial risk due to increased interest payments and potential financial constraints.
It is important to assess the reasons behind the changes in the debt-to-capital ratio, considering factors such as borrowing for expansion, refinancing, or other strategic initiatives. Additionally, monitoring this ratio over time can provide insights into the company's capital structure management and financial risk appetite.