Six Flags Entertainment Corporation (FUN)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,282,460 | 2,235,900 | 2,313,020 | 2,693,410 | 2,581,140 |
| Total stockholders’ equity | US$ in thousands | -588,246 | 323,277 | 8,943 | 2,599 | 9,746 |
| Financial leverage ratio | — | 6.92 | 258.64 | 1,036.33 | 264.84 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,282,460K ÷ $-588,246K
= —
The financial leverage ratio of Six Flags Entertainment Corporation has shown significant fluctuations over the past five years. In 2019, the ratio stood at 264.84, indicating a moderate level of financial leverage. However, there was a substantial increase in 2020 to 1,036.33, suggesting a significant rise in leverage, possibly due to increased debt relative to equity.
In 2021, the financial leverage ratio skyrocketed to 258.64, signifying a substantial decrease in leverage compared to the previous year. This sharp decline may indicate a reduction in debt or an increase in equity, resulting in a healthier financial structure.
The latest available data for 2022 shows a financial leverage ratio of 6.92, which is significantly lower than the ratios observed in the preceding years. This decrease may signify a strategic effort to lower leverage levels, potentially by paying down debt or raising additional equity.
It is essential to consider the trend in the financial leverage ratio over time to assess the company's capital structure and financial risk. Fluctuations in this ratio can indicate shifts in the company's borrowing practices, ability to meet financial obligations, and overall financial health. Further analysis and consideration of the company's financial strategy are necessary to fully understand the implications of these changes in the financial leverage ratio.
Peer comparison
Dec 31, 2023