Six Flags Entertainment Corporation (SIX)
Six Flags Entertainment Corporation prides itself on entertaining millions of families each year as the worlds largest regional theme park company with 18 theme parks spread across North America (Six Flags, 2013). Six Flags primary source of revenue comes from providing world-class entertainment to families and individuals who pay for admission into its parks to ride its coasters, themed rides, and water park attractions. Six Flags has had its ups and downs during its 50-year history but over the past three years it has remained a strong company with total assets increasing year over year. The following analysis will show the financial health and well being of Six Flags Entertainment Corporation.
Analysis of Financial Ratios
Six Flags had a solid gross profit margin of 92.51% in 2012 and this ratio has increased slightly over the past three years when it was 91.89% in 2010. This is a good indicator that Six Flags should have a healthy bottom line and it should have plenty of money left over to spend on other business operations and expenses. When it comes to operating profit margin, Six Flags has increased from 9.99% in 2010 to 19.12% in 2012. This ten percent increase in the operating profit margin could be a good indication that sales are currently outpacing cost. This is great for Six Flags because it means that sales are increasing while at the same it is able to keep its costs in check.
With gross profit margin and operating profit margin both on solid footings it appears that Six Flags net profit margin is like a roller coaster ride. In 2010, Six Flags had a net profit margin of 61.37% and in 2011 its net profit margin plummeted into the red at negative 2.24%. This drop ...
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Management Accounting, August 1990. Copyright by National Association of
Accountants, Montvale, NJ.
Six Flags. (2013). Investor relations. Retrieved from. http://investors.sixflags.com/
Six Flags Entertainment Corporation. (2013). Income statement. Retrieved from.
Six Flags Entertainment Corporation. (2013). Balance sheet. Retrieved from.
Six Flags Entertainment Corporation. (2013). Cash flow. Retrieved from.
United States Securities and Exchange Commission. (2013). Six flags entertainment corporation
Form 10-K. Retrieved from. http://www.sec.gov/Archives/edgar/data/701374/000104749
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