Cinemark Holdings Inc (CNK)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 188,200 | -271,200 | -422,800 | -616,800 | 191,386 |
| Total assets | US$ in thousands | 4,655,900 | 4,623,300 | 5,230,600 | 5,562,920 | 5,828,020 |
| ROA | 4.04% | -5.87% | -8.08% | -11.09% | 3.28% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $188,200K ÷ $4,655,900K
= 4.04%
The return on assets (ROA) for Cinemark Holdings Inc has shown significant fluctuations over the past five years. In 2019, the ROA was at a positive 3.26%, indicating that the company was generating a profit from its assets. However, in the following years, the ROA turned negative, with a notable decrease to -11.01% in 2020, suggesting that the company's assets were not effectively producing income.
The negative trend continued in 2021 and 2022, with ROAs of -7.97% and -5.78% respectively, indicating ongoing challenges in asset utilization and profitability. However, there was a slight improvement in 2023, with the ROA increasing to 3.82%, suggesting that the company may have made some progress in enhancing its asset efficiency and generating returns.
Overall, the fluctuating ROA trend for Cinemark Holdings Inc highlights the company's struggles in effectively utilizing its assets to generate profits and underscores the need for continued monitoring and strategic efforts to improve asset performance and profitability.