Six Flags Entertainment Corporation (FUN)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 9,130,520 | 9,369,230 | 2,347,830 | 2,264,260 | 2,282,460 | 2,318,600 | 2,316,420 | 2,209,740 | 2,235,900 | 2,414,460 | 2,417,000 | 2,350,300 | 2,313,020 | 2,814,490 | 2,664,230 | 2,627,660 | 2,693,410 | 2,501,520 | 2,657,530 | 2,389,480 |
| Total stockholders’ equity | US$ in thousands | 2,041,860 | 2,341,580 | 14,685 | -736,202 | -588,246 | -571,053 | 14,437 | 140,110 | 323,277 | 16,453 | 14,615 | 11,796 | 8,943 | 737,521 | 424,783 | 489,741 | 541,732 | 421,735 | 463,832 | 88,997 |
| Financial leverage ratio | 4.47 | 4.00 | 159.88 | — | — | — | 160.45 | 15.77 | 6.92 | 146.75 | 165.38 | 199.25 | 258.64 | 3.82 | 6.27 | 5.37 | 4.97 | 5.93 | 5.73 | 26.85 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,130,520K ÷ $2,041,860K
= 4.47
The financial leverage ratio of Six Flags Entertainment Corporation has shown significant fluctuations over the past few years. The ratio, which indicates the company's use of debt to finance its operations and investments, was relatively high at 26.85 as of March 31, 2020, suggesting a higher reliance on debt.
Subsequently, there was a notable decrease in the financial leverage ratio to 5.73 by June 30, 2020, and it remained relatively stable around the range of 5 to 6 for the next few quarters. This signifies a more balanced capital structure with a mix of debt and equity financing.
However, there was a sudden spike in the ratio to 258.64 by December 31, 2021, and further to 199.25 by March 31, 2022, indicating a substantial increase in debt relative to equity. This could raise concerns about the company's financial risk and ability to meet its debt obligations.
Subsequently, there was a significant decrease in the financial leverage ratio to more reasonable levels by the end of 2023 and into 2024, ranging from 4 to around 160.45. The sudden drop and rise in the ratio may point towards potential restructuring activities or changes in the company's debt management strategy during this period.
Overall, analyzing the financial leverage ratio trend can provide insights into Six Flags Entertainment Corporation's capital structure decisions, debt management practices, and financial risk management strategies over time.
Peer comparison
Dec 31, 2024