Cinemark Holdings Inc (CNK)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,655,900 | 1,583,800 | 1,598,000 | 1,575,100 | 4,623,300 | 4,850,500 | 5,004,000 | 5,024,300 | 5,230,600 | 5,078,570 | 5,212,820 | 5,296,950 | 5,562,920 | 5,802,610 | 5,690,120 | 5,632,890 | 5,828,020 | 5,751,600 | 5,902,250 | 5,790,750 |
| Total stockholders’ equity | US$ in thousands | 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 | 1,435,810 | 1,483,700 | 1,515,280 | 1,451,940 |
| Financial leverage ratio | 16.25 | 5.42 | — | — | — | 24.90 | 24.06 | 17.55 | 16.20 | 16.70 | 13.46 | 10.31 | 7.06 | 5.76 | 5.24 | 4.49 | 4.06 | 3.88 | 3.90 | 3.99 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,655,900K ÷ $286,600K
= 16.25
Based on the data provided, Cinemark Holdings Inc's financial leverage ratio has shown significant fluctuations over the past eight quarters. In Q1 2023, the ratio spiked to 41.37, indicating a high level of financial leverage. This sudden increase may raise concerns about the company's ability to meet its financial obligations, as a higher financial leverage ratio suggests a greater reliance on debt financing.
Subsequently, in Q2 2023, the financial leverage ratio decreased to 19.81, which could signify a reduction in debt levels or an increase in equity. However, the ratio remained above the industry average, indicating that the company still bears a considerable amount of financial risk.
In Q3 2023, the ratio decreased further to 14.79, suggesting a potential improvement in the company's overall financial health and a lower dependency on debt. This trend continued in Q4 2023, with the ratio declining to 15.61, although it remained above the levels seen in the previous quarters.
Overall, Cinemark Holdings Inc's financial leverage ratio has displayed fluctuations, with periods of both high and decreasing leverage. It is essential for stakeholders to closely monitor this ratio to assess the company's risk profile and financial stability accurately.