Cinemark Holdings Inc (CNK)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.51 | 0.49 | 0.49 | 0.47 | 0.49 | 0.48 | 0.47 | 0.43 | 0.41 | 0.37 | 0.33 |
| Debt-to-capital ratio | — | — | — | — | 0.00 | 0.00 | — | — | — | 0.93 | 0.92 | 0.90 | 0.88 | 0.89 | 0.86 | 0.83 | 0.75 | 0.70 | 0.66 | 0.60 |
| Debt-to-equity ratio | — | — | — | — | 0.00 | 0.00 | — | — | — | 12.70 | 11.90 | 8.65 | 7.67 | 8.15 | 6.40 | 4.82 | 3.02 | 2.35 | 1.95 | 1.49 |
| 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 |
Cinemark Holdings Inc's solvency ratios paint a picture of its ability to meet its long-term financial obligations.
1. Debt-to-assets ratio: This ratio increased steadily from 0.33 in March 2020 to peak at 0.51 in September 2022 before dropping to 0.00 at the end of 2022 and remaining there in subsequent periods. The declining trend towards the end implies a reduction in the company's dependence on debt to finance its assets.
2. Debt-to-capital ratio: Similarly, the debt-to-capital ratio rose from 0.60 in March 2020 to 0.93 in September 2022 before data availability stops. The absence of data for the last few periods may indicate a change in reporting or a strategic shift in capital structure.
3. Debt-to-equity ratio: This ratio soared from 1.49 in March 2020 to a high of 12.70 in September 2022. However, data is unavailable for the last few periods, making it difficult to assess the current level of leverage based on this ratio alone.
4. Financial leverage ratio: Cinemark's financial leverage ratio followed a similar upward trajectory from 4.49 in March 2020 to 24.90 in September 2022, indicating a significant increase in leverage. There is a lack of data for some periods, which limits the ability to assess recent leverage levels accurately.
Overall, the declining trend in the debt-to-assets ratio and the absence of data for certain periods in the debt-to-capital ratio and debt-to-equity ratio suggest potential improvements in the company's solvency position. However, the high financial leverage ratio indicates a substantial reliance on debt financing, which may pose risks to the company's long-term financial health. Moving forward, it would be essential for Cinemark Holdings Inc to closely monitor and manage its debt levels to ensure sustainable solvency.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -4.85 | — | — | — | — | -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 |
The interest coverage ratio of Cinemark Holdings Inc shows a fluctuating trend over the period from March 31, 2020, to December 31, 2024.
The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income.
From March 31, 2020, to June 30, 2022, the company experienced a negative interest coverage ratio, indicating that its operating income was insufficient to cover its interest expenses during these periods. This suggests that the company may have been facing financial challenges in meeting its interest payments.
However, as of September 30, 2022, the interest coverage ratio improved to 2.20, indicating that the company's operating income was more than sufficient to cover its interest expenses. This improvement suggests a positive shift in the company's financial performance and ability to meet its debt obligations.
The interest coverage ratio then decreased slightly by December 31, 2022, and remained negative in the subsequent quarters, indicating that the company may have experienced some financial difficulties in meeting its interest obligations again.
As of December 31, 2024, the interest coverage ratio stood at -4.85, showcasing a concerning trend in the company's ability to cover its interest expenses with its operating income.
Overall, the fluctuating interest coverage ratio of Cinemark Holdings Inc over the analyzed period indicates varying levels of financial health and ability to service its interest payments.