Six Flags Entertainment Corporation (FUN)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | — | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | — | 6.92 | 258.64 | 1,036.33 | 264.84 |
Six Flags Entertainment Corporation has consistently maintained a debt-free status in terms of its debt-to-assets, debt-to-capital, and debt-to-equity ratios for the years 2019 to 2023. This indicates that the company has not utilized debt to finance its operations or investments and relies primarily on equity financing.
However, the financial leverage ratio shows a significant fluctuation over the same period, ranging from 264.84 in 2019 to 1,036.33 in 2020, before dropping to 258.64 in 2021, and ultimately to not being available in 2022 and 2023. This erratic trend indicates that the company may have experienced significant fluctuations in its financial structure during those years, possibly due to changes in capital structure or other financial activities.
Overall, the consistent debt-free status of Six Flags Entertainment Corporation suggests a stable financial position in terms of solvency and low financial risk, despite the fluctuations in the financial leverage ratio observed over the years.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 2.44 | 2.49 | 0.87 | -3.05 | 4.84 |
The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher ratio indicates a stronger ability to cover interest payments.
Looking at Six Flags Entertainment Corporation's interest coverage over the past five years, we observe fluctuations in the ratio. In 2023, the interest coverage ratio stood at 2.44, slightly lower than the previous year's ratio of 2.49. This indicates that the company generated 2.44 times the amount needed to cover its interest obligations for the year.
In 2021, the interest coverage ratio was 0.87, signaling a decline in the company's ability to cover interest expenses. The ratio was negative in 2020, standing at -3.05, indicating that the company's earnings were insufficient to cover its interest costs during that period.
However, in 2019, Six Flags Entertainment Corporation exhibited a strong interest coverage ratio of 4.84, indicating a healthy ability to meet its interest obligations.
Overall, the trend in Six Flags Entertainment Corporation's interest coverage ratio fluctuates over the period, with variations in the company's ability to cover its interest expenses. Investors and creditors may consider these fluctuations when assessing the company's financial health and risk profile.