Analyze the capital structure and long-term solvency of amc

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Reference no: EM13899443

Using the ratios and information given for AMC Entertainment Inc., owner and operator of movie theaters, analyze the capital structure, long-term solvency, and profitability of AMC as of 2010.

Financial ratios

2010

2009

Leverage

 

 

Debt ratio (%)

79.2

72.1

Long-term debt to total capital (%)

70.6

61.8

Times interest earned (times)

0.8

(3.3)

Cash interest coverage (times)

3.2

2.7

Fixed charge coverage (times)

1.0

0.8

Cash flow adequacy (times)

0.3

1.2

Profitability

 

 

Gross profit margin (%)

58.6

59.8

Operating profit margin (%)

4.4

(0.2)

Net profit margin (%)

2.9

(3.6)

Cash flow margin (%)

10.7

8.9

Return on assets (%)

1.9

(2.2)

Return on equity (%)

9.2

(7.8)

Cash return on assets (%)

7.1

5.4

Other Information

 

 

Cash flow from operations (in thousands of $)

258,015

200,701

Revenues (in thousands of $)

2,417,739

2,265,487

Reference no: EM13899443

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