Six Flags Entertainment Corporation (FUN)

The solvency ratios of Six Flags Entertainment Corporation indicate its ability to meet its long-term financial obligations. The Debt-to-assets ratio remained consistently low at 0.00% from 2020 to 2023, indicating that the company's total debt was minimal in relation to its total assets during those years. However, in 2024, the ratio increased to 0.52%, indicating a slight increase in debt relative to assets.

The Debt-to-capital ratio and Debt-to-equity ratio were also low from 2020 to 2022, at 0.00%, indicating that the company had minimal debt in relation to its capital and equity during those years. However, in 2024, the Debt-to-capital ratio increased to 0.70% and the Debt-to-equity ratio increased significantly to 2.31%, suggesting an increase in debt relative to the company's capital and equity.

The Financial leverage ratio, which measures the company's total assets in relation to its equity, was significantly high in 2020 at 1,036.33, indicating high financial leverage. This ratio decreased substantially in 2021 and 2022 to 258.64 and 6.92, respectively, showing a significant improvement in the company's financial leverage. However, data for 2023 is not available, and in 2024, the ratio increased to 4.47, suggesting a slight increase in financial leverage compared to the previous year.

Overall, while Six Flags Entertainment Corporation maintained low debt ratios in the earlier years, there were signs of increased debt and financial leverage in 2024, which may warrant further investigation into the company's financial health and risk management strategies.

---

Coverage ratios

Interest coverage ratio is a key financial metric used to assess a company's ability to meet its interest obligations on outstanding debt.

Looking at the data provided for Six Flags Entertainment Corporation, the interest coverage ratio has shown fluctuations over the past years. In December 2020, the company had a negative interest coverage ratio of -3.05, indicating that the company's earnings were not sufficient to cover its interest expenses. This can raise concerns about the company's financial health and ability to service its debt.

However, there has been an improvement in the interest coverage ratio in the subsequent years. By December 2021, the ratio increased to 0.87, although it was still below 1, suggesting that the company's earnings were just enough to cover its interest costs.

In the following years, the interest coverage ratio continued to improve, reaching 2.49 in December 2022 and 2.44 in December 2023. This indicates that the company's earnings have become more sufficient to cover its interest expenses, signaling a better financial position.

Interestingly, in December 2024, the interest coverage ratio dropped to 0.00, which could be a cause for concern as it suggests that the company's earnings were not enough to cover its interest payments at that specific point in time.

Overall, while there have been improvements in Six Flags Entertainment Corporation's interest coverage ratio over the years, fluctuations in this ratio highlight the importance of monitoring the company's financial performance and debt servicing ability.