Cinemark Holdings Inc (CNK)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 249,600 | 218,100 | -268,200 | -439,600 | -926,200 |
| Revenue | US$ in thousands | 3,056,400 | 3,234,700 | 2,299,400 | 1,352,960 | 551,574 |
| Pretax margin | 8.17% | 6.74% | -11.66% | -32.49% | -167.92% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $249,600K ÷ $3,056,400K
= 8.17%
Cinemark Holdings Inc's pretax margin, a key measure of a company's profitability efficiency before accounting for taxes, has shown a significant improvement over the past five years. In December 2020, the pretax margin was -167.92%, indicating a substantial loss before taxes. However, the company managed to reduce this loss significantly by the end of December 2021, with a pretax margin of -32.49%.
Over the following years, Cinemark continued to enhance its profitability performance. By December 2022, the company's pretax margin improved to -11.66%, moving into negative but less substantial territory. The positive trend continued in December 2023, where the pretax margin turned positive at 6.74%, indicating that the company was able to generate profit before accounting for taxes.
The most recent data for December 2024 shows an even stronger performance, with a pretax margin of 8.17%. This demonstrates Cinemark's ability to not only recover from losses but also achieve a healthy level of profitability. Overall, the improving trend in Cinemark's pretax margin reflects the company's efforts to enhance its operational efficiency and financial performance over the analyzed period.