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.
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Financial ratios
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2010
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2009
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Leverage
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|
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Debt ratio (%)
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79.2
|
72.1
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Long-term debt to total capital (%)
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70.6
|
61.8
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Times interest earned (times)
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0.8
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(3.3)
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Cash interest coverage (times)
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3.2
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2.7
|
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Fixed charge coverage (times)
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1.0
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0.8
|
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Cash flow adequacy (times)
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0.3
|
1.2
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Profitability
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|
|
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Gross profit margin (%)
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58.6
|
59.8
|
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Operating profit margin (%)
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4.4
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(0.2)
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Net profit margin (%)
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2.9
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(3.6)
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Cash flow margin (%)
|
10.7
|
8.9
|
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Return on assets (%)
|
1.9
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(2.2)
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Return on equity (%)
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9.2
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(7.8)
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Cash return on assets (%)
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7.1
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5.4
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Other Information
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|
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Cash flow from operations (in thousands of $)
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258,015
|
200,701
|
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Revenues (in thousands of $)
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2,417,739
|
2,265,487
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