Cinemark Holdings Inc (CNK)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 97.91% | 97.07% | 89.50% | 68.62% | 20.55% |
| Operating profit margin | 11.88% | 11.32% | -3.77% | -18.66% | -136.88% |
| Pretax margin | 8.17% | 6.74% | -11.66% | -32.49% | -167.92% |
| Net profit margin | 10.13% | 5.82% | -11.79% | -31.25% | -111.83% |
Cinemark Holdings Inc has shown a significant improvement in its profitability ratios over the years. The Gross profit margin has witnessed a remarkable increase from 20.55% in December 2020 to 97.91% in December 2024, indicating a strong ability to generate profit from its revenue after accounting for the cost of goods sold.
Similarly, the Operating profit margin has shown a turnaround from negative figures of -136.88% in December 2020 to 11.88% in December 2024, signifying an enhancement in the company's efficiency in managing its operating expenses.
The Pretax margin has also displayed a positive trend, moving from negative percentages in 2020 and 2021 to single-digit positive percentages in 2023 and 2024. This indicates an improvement in the company's ability to generate profits before accounting for taxes.
Lastly, the Net profit margin has shown consistent growth from negative percentages in 2020 and 2021 to 10.13% in December 2024, showcasing an increase in the company's overall profitability after accounting for all expenses and taxes.
Overall, Cinemark Holdings Inc has made significant progress in enhancing its profitability margins, reflecting efficient cost management and revenue generation strategies.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 32.20% | 7.87% | -1.88% | -4.83% | -13.57% |
| Return on assets (ROA) | 27.47% | 4.04% | -5.87% | -8.08% | -11.09% |
| Return on total capital | — | 23.62% | — | -10.36% | -25.16% |
| Return on equity (ROE) | — | 65.67% | — | -130.94% | -78.28% |
Cinemark Holdings Inc's profitability ratios reflect fluctuating performance over the years.
- Operating return on assets (Operating ROA) shows the company's ability to generate earnings from its operational assets. The ratio improved from -13.57% in 2020 to 32.20% in 2024, indicating a significant increase in operational efficiency.
- Return on assets (ROA) measures the company's ability to generate profit from its total assets. The ratio improved from -11.09% in 2020 to 27.47% in 2024, reflecting a positive trend in asset utilization and overall profitability.
- Return on total capital represents the company's efficiency in generating returns from all sources of capital. Although data for 2022 is unavailable, the ratio improved from -25.16% in 2020 to 23.62% in 2023, indicating a positive trend in capital management and utilization.
- Return on equity (ROE) evaluates the company's ability to generate returns for its shareholders. The ratio fluctuated significantly from -78.28% in 2020 to 65.67% in 2023. The absence of data for 2022 and 2024 makes it difficult to assess the trend accurately.
Overall, Cinemark Holdings Inc's improvement in profitability ratios, especially in ROA and Operating ROA, suggests better operational efficiency and effective asset utilization. However, the fluctuating performance in ROE and the absence of data for certain years indicate potential challenges in generating returns for shareholders and managing equity effectively.