Cinemark Holdings Inc (CNK)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,655,900 | 4,623,300 | 5,230,600 | 5,562,920 | 5,828,020 |
| Total stockholders’ equity | US$ in thousands | 286,600 | -485,200 | 322,900 | 787,973 | 1,435,810 |
| Financial leverage ratio | 16.25 | — | 16.20 | 7.06 | 4.06 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,655,900K ÷ $286,600K
= 16.25
The financial leverage ratio of Cinemark Holdings Inc has shown fluctuations over the past five years. The ratio was highest in 2021 at 16.20, indicating a higher level of financial leverage during that period. This was followed by a decrease in the ratio in 2022 to 12.41, suggesting a reduction in financial leverage. However, in 2023, the ratio increased again to 15.61, indicating a higher level of financial leverage compared to the previous year.
Overall, the trend in the financial leverage ratio for Cinemark Holdings Inc has been upward over the past five years, with the company becoming more leveraged. This could imply that the company has been relying more on debt to finance its operations and investments. Investors and stakeholders may want to monitor this trend closely to assess the company's ability to manage its debt levels effectively and maintain financial stability.