Cinemark Holdings Inc (CNK)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 309,700 | 188,200 | -271,200 | -422,800 | -616,800 |
| Total assets | US$ in thousands | 1,127,300 | 4,655,900 | 4,623,300 | 5,230,600 | 5,562,920 |
| ROA | 27.47% | 4.04% | -5.87% | -8.08% | -11.09% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $309,700K ÷ $1,127,300K
= 27.47%
Cinemark Holdings Inc's return on assets (ROA) has shown a fluctuating trend over the past five years. The ROA was negative in the years ending December 31, 2020 (-11.09%), December 31, 2021 (-8.08%), and December 31, 2022 (-5.87%), indicating that the company was not efficiently generating profits from its assets during these periods.
However, there has been a significant improvement in the company's ROA in recent years. By the end of December 31, 2023, the ROA turned positive at 4.04%, suggesting that Cinemark was able to generate a modest return on its assets. This positive trend continued into December 31, 2024, with a notable increase in the ROA to 27.47%, indicating a substantial improvement in the company's asset utilization and profitability.
Overall, the recent positive performance in ROA suggests that Cinemark Holdings Inc has been more effective in generating profits from its assets, which is a positive indicator of the company's operational efficiency and financial health.