Cinemark Holdings Inc (CNK)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 366,200 | -86,800 | -252,472 | -754,974 | 338,387 |
| Total assets | US$ in thousands | 4,655,900 | 4,623,300 | 5,230,600 | 5,562,920 | 5,828,020 |
| Operating ROA | 7.87% | -1.88% | -4.83% | -13.57% | 5.81% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $366,200K ÷ $4,655,900K
= 7.87%
Cinemark Holdings Inc's operating return on assets (operating ROA) has displayed significant fluctuations over the past five years. In 2023, the operating ROA improved to 7.69%, marking a substantial increase from the previous year's 1.46%. This improvement indicates better operational efficiency and profitability in generating earnings from its assets.
Looking back, in 2021 and 2020, Cinemark experienced negative operating ROA figures of -4.77% and -11.32%, respectively. These losses suggest that the company struggled to generate profits from its assets during those periods.
However, in 2019, the operating ROA stood at a healthy 6.99%, indicating that Cinemark was effectively utilizing its assets to generate earnings. Overall, the fluctuation in operating ROA over the years highlights the company's ability to adapt to changing market conditions and improve its operational performance.