Cinemark Holdings Inc (CNK)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 218,100 | -268,200 | -439,600 | -926,200 | 271,298 |
| Revenue | US$ in thousands | 3,234,700 | 2,299,400 | 1,352,960 | 551,574 | 3,179,760 |
| Pretax margin | 6.74% | -11.66% | -32.49% | -167.92% | 8.53% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $218,100K ÷ $3,234,700K
= 6.74%
Cinemark Holdings Inc's pretax margin has displayed significant fluctuations over the past five years. In 2019, the pretax margin stood at a healthy 8.34%, indicating that for every dollar of revenue generated, the company was able to retain 8.34 cents before accounting for taxes. However, in 2020, the pretax margin took a dramatic downturn, plummeting to -135.12%, reflecting that the company incurred losses before tax despite generating revenue.
In 2021, Cinemark's pretax margin continued to show weakness at -29.07%, implying that the company's expenses were considerably high relative to its revenue during that period. The situation improved slightly in 2022, but the company still operated with a negative pretax margin of -10.80%, indicating ongoing financial challenges.
In 2023, Cinemark's pretax margin recovered to a positive 7.22%, showcasing an improvement in profitability compared to the previous years. Despite this positive development, the company's historical pretax margin trend highlights the need for continued monitoring and evaluation of its operational efficiency and cost management strategies.