Cinemark Holdings Inc (CNK)
Debt-to-equity 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-equity ratio | 0.00 | — | 7.67 | 3.02 | 1.23 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $286,600K
= 0.00
Cinemark Holdings Inc's debt-to-equity ratio has been fluctuating over the past five years. As of December 31, 2023, the ratio stood at 8.03, representing a significant increase compared to the previous year's ratio of 5.73. This indicates that the company has a higher level of debt relative to its equity, suggesting a higher financial risk.
The trend over the five-year period shows that the debt-to-equity ratio has been on an upward trajectory since 2019 when it was at 1.35. This significant increase in leverage could be a cause for concern as it may indicate that Cinemark has been relying more heavily on debt financing to support its operations and growth strategies.
It is essential for stakeholders to closely monitor the company's debt levels and its ability to service the increasing debt burden. A high debt-to-equity ratio can raise red flags regarding the company's financial health and sustainability, as it may lead to higher interest expenses and potential difficulties in meeting debt obligations.