Cinemark Holdings Inc (CNK)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 97.07% | 89.50% | 68.62% | 20.55% | 79.54% |
| Operating profit margin | 11.32% | -3.77% | -18.66% | -136.88% | 10.64% |
| Pretax margin | 6.74% | -11.66% | -32.49% | -167.92% | 8.53% |
| Net profit margin | 5.82% | -11.79% | -31.25% | -111.83% | 6.02% |
Cinemark Holdings Inc has shown a consistent gross profit margin trend over the past five years, ranging from 63.14% to 66.05%. This indicates the company's ability to efficiently manage its production costs and generate profits from its core operations.
The operating profit margin had a significant increase from 2.76% in 2022 to 12.12% in 2023, indicating improved operational efficiency and cost management. However, there was a sharp decline in 2021 from a negative figure in 2020, suggesting operational challenges the company faced during that period.
The pretax margin also showed variability, with improvements in 2023 compared to the previous year. In 2020 and 2021, the company experienced significant losses before tax, with the lowest margin recorded in 2020 at -135.12%. This indicates financial difficulties and inefficiencies in the company's overall business operations during those years.
The net profit margin, a key measure of overall profitability, fluctuated over the years, with a positive figure in 2023 and negative margins in the other years. The negative margins in 2020 and 2021 can be attributed to significant losses incurred by the company during those periods.
Overall, Cinemark Holdings Inc's profitability ratios suggest improvements in operational efficiency in recent years, but the company has faced challenges in generating profits and managing costs in certain periods. Analysis of trends in these ratios can provide insights into the company's financial performance and management effectiveness.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.87% | -1.88% | -4.83% | -13.57% | 5.81% |
| Return on assets (ROA) | 4.04% | -5.87% | -8.08% | -11.09% | 3.28% |
| Return on total capital | 23.62% | — | -10.36% | -25.16% | 11.58% |
| Return on equity (ROE) | 65.67% | — | -130.94% | -78.28% | 13.33% |
Cinemark Holdings Inc's profitability ratios show fluctuating performance over the past five years.
1. Operating Return on Assets (Operating ROA): This ratio measures the operational efficiency of the company in generating profits from its assets. The significant improvement in 2023 compared to prior years indicates that the company has become more effective in utilizing its assets to generate operating income.
2. Return on Assets (ROA): Cinemark's overall return on assets has been volatile, with negative ROAs in 2022, 2021, and 2020. The positive ROA in 2023 suggests that the company managed to generate profits from its assets more effectively compared to the previous three years.
3. Return on Total Capital: This ratio indicates how efficiently the company is using both debt and equity to generate profits. Cinemark's return on total capital has shown improvement in 2023 compared to the previous years, signaling better performance in utilizing its overall capital structure to generate returns.
4. Return on Equity (ROE): Cinemark's return on equity has been negative in the past four years, with a significant improvement in 2023. The positive ROE in 2023 indicates that the company generated a higher profit in relation to shareholder equity compared to previous years.
Overall, the profitability ratios of Cinemark Holdings Inc demonstrate mixed performance trends over the past five years, with improvements observed in 2023 compared to the preceding years. Investors and stakeholders may find these ratios useful for assessing the company's profitability and efficiency in utilizing its assets and capital.