Cinemark Holdings Inc (CNK)
Debt-to-capital ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | 2,473,500 | 2,474,900 | 2,476,600 | 2,476,300 | 2,477,260 | 2,478,630 | 2,476,680 | 2,377,160 | 2,366,380 | 2,117,290 | 1,869,820 |
| Total stockholders’ equity | US$ in thousands | -528,300 | -502,000 | -510,500 | -498,200 | 286,600 | 292,300 | -474,900 | -479,200 | -485,200 | 194,800 | 208,000 | 286,300 | 322,900 | 304,136 | 387,158 | 513,589 | 787,973 | 1,007,030 | 1,086,920 | 1,253,280 |
| Debt-to-capital ratio | — | — | — | — | 0.00 | 0.00 | — | — | — | 0.93 | 0.92 | 0.90 | 0.88 | 0.89 | 0.86 | 0.83 | 0.75 | 0.70 | 0.66 | 0.60 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $-528,300K)
= —
The debt-to-capital ratio of Cinemark Holdings Inc has been showing a consistent upward trend from March 31, 2020, to September 30, 2022, indicating an increasing reliance on debt financing in relation to its total capital structure. The ratio increased from 0.60 in March 2020 to 0.93 in September 2022, peaking at 0.93. However, from the fourth quarter of 2022 onwards, the ratio saw a significant decline, dropping to 0.00 by December 31, 2023, and maintaining this level through the end of 2024, indicating a shift towards a more equity-funded capital structure.
The ratio exceeding 1.0 would signal that the company is mainly funded by debt, while a ratio of 0.0 would indicate an absence of debt in the capital structure. The decrease in the debt-to-capital ratio in late 2022 and through 2023 and 2024 may suggest a strategic decision by Cinemark Holdings Inc to reduce its debt levels or increase its equity components in response to changing market conditions or internal financial goals. This movement towards less debt may reduce the financial risk associated with high debt levels and enhance the company's financial stability in the long term.