Cinemark Holdings Inc (CNK)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 67,700 | -470,100 | -373,100 | -187,200 | -112,900 | 335,389 | 220,406 | 6,806 | -289,894 | -621,125 | -804,602 | -944,695 | -796,328 | -440,688 | -138,155 | 263,420 | 371,239 | 386,790 | 409,958 | 374,803 |
| Interest expense (ttm) | US$ in thousands | -150,400 | 152,700 | 153,000 | 154,000 | 155,300 | 152,720 | 152,313 | 151,213 | 149,713 | 149,209 | 147,793 | 141,834 | 129,900 | 117,188 | 105,578 | 99,466 | 99,941 | 102,306 | 104,483 | 108,020 |
| Interest coverage | — | -3.08 | -2.44 | -1.22 | -0.73 | 2.20 | 1.45 | 0.05 | -1.94 | -4.16 | -5.44 | -6.66 | -6.13 | -3.76 | -1.31 | 2.65 | 3.71 | 3.78 | 3.92 | 3.47 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $67,700K ÷ $-150,400K
= —
Cinemark Holdings Inc's interest coverage ratio has shown a fluctuating trend over the past eight quarters. The company's ability to cover its interest payments improved from Q1 2022 to Q4 2023, reaching a high of 3.18 in the most recent quarter. This indicates that Cinemark's operating income was 3.18 times its interest expenses in Q4 2023, suggesting a strong ability to meet its interest obligations. However, it is important to note that the ratio was at a concerning level in Q1 2022, with an interest coverage of only 0.97, indicating lower operating income relative to interest expenses at that time. Overall, Cinemark's interest coverage has shown improvement in recent quarters, which is a positive sign for the company's financial health.