Cinemark Holdings Inc (CNK)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 363,000 | 366,200 | -86,800 | -252,472 | -754,974 |
| Total assets | US$ in thousands | 1,127,300 | 4,655,900 | 4,623,300 | 5,230,600 | 5,562,920 |
| Operating ROA | 32.20% | 7.87% | -1.88% | -4.83% | -13.57% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $363,000K ÷ $1,127,300K
= 32.20%
Cinemark Holdings Inc's operating return on assets (operating ROA) reveals a fluctuating trend over the past five years.
In December 2020, the operating ROA was recorded at -13.57%, indicating that the company generated negative returns from its operations relative to its assets. This reflected a lack of operational efficiency and profitability.
By the end of December 2021, the operating ROA improved to -4.83%, still negative but showing a slight recovery compared to the previous year. Despite this improvement, the company was still struggling to effectively utilize its assets to generate positive operating returns.
In December 2022, there was a further improvement in the operating ROA, reaching -1.88%. Although it remained negative, the decreasing magnitude of the negative return suggested that Cinemark Holdings Inc was gradually becoming more efficient in generating returns from its assets.
The trend took a positive turn in December 2023, with the operating ROA significantly increasing to 7.87%. This marked a turnaround for the company, as it managed to achieve positive returns on its operations relative to its assets. This improvement indicated enhanced operational performance and profitability.
By December 2024, Cinemark Holdings Inc's operating ROA surged to 32.20%, showcasing a substantial increase from the previous year. This significant leap indicated that the company was effectively utilizing its assets to generate solid operating returns, highlighting strong operational efficiency and profitability.
Overall, the trend in Cinemark Holdings Inc's operating ROA demonstrates a journey from negative returns to positive returns over the specified period, reflecting improvements in operational efficiency and effectiveness in utilizing assets to drive profitability.