Six Flags Entertainment Corporation (FUN)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 4,723,070 | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,041,860 | -588,246 | 323,277 | 8,943 | 2,599 |
| Debt-to-capital ratio | 0.70 | — | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $4,723,070K ÷ ($4,723,070K + $2,041,860K)
= 0.70
The debt-to-capital ratio for Six Flags Entertainment Corporation has been consistently at 0.00% from December 31, 2020, to December 31, 2022. However, there is a significant increase in the ratio to 0.70% as of December 31, 2024. It is important to note that the ratio was not reported for December 31, 2023.
A debt-to-capital ratio of 0.00% indicates that the company has not been reliant on debt to finance its operations relative to its capital structure in the specified years. The sudden increase in the ratio in 2024 may suggest that Six Flags Entertainment Corporation has taken on more debt in comparison to its total capital, which could potentially indicate a shift in its financial strategy towards leveraging more debt.
Further analysis into the reasons behind this increase, including the purpose of the additional debt and the company's ability to service it, would be beneficial to understand the implications on the company's financial health and risk profile.
Peer comparison
Dec 31, 2024