Cinemark Holdings Inc (CNK)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 369,500 | 67,700 | -112,900 | -289,900 | -796,300 |
| Interest expense | US$ in thousands | 119,900 | -150,400 | -155,300 | 149,700 | 129,900 |
| Interest coverage | 3.08 | — | — | -1.94 | -6.13 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $369,500K ÷ $119,900K
= 3.08
The interest coverage ratio measures a company's ability to meet its interest payment obligations with its earnings before interest and taxes (EBIT). A higher ratio indicates a stronger ability to cover interest expenses.
Looking at the trend for Cinemark Holdings Inc, the interest coverage ratio has been fluctuating over the years. In 2020, the ratio was negative at -6.13, which implies the company's EBIT was insufficient to cover its interest expenses, raising concerns about its financial health.
By the end of 2021, the ratio improved but remained negative at -1.94, indicating that the company's ability to cover interest payments improved slightly but was still inadequate. However, it's noteworthy that the ratio for 2022 and 2023 is not available ("\u2014"), which may suggest that the data is not yet available or that there have been significant changes in the company's financials.
In 2024, the interest coverage ratio turned positive at 3.08, signaling an improvement in Cinemark Holdings Inc's ability to meet its interest obligations with its EBIT. This positive ratio indicates a stronger financial position compared to the negative values observed in the previous years.
Overall, the fluctuating trend in the interest coverage ratio for Cinemark Holdings Inc highlights the company's variable ability to cover its interest expenses over the years, with recent improvements indicating a better financial performance.