Cinemark Holdings Inc (CNK)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 286,600 | -485,200 | 322,900 | 787,973 | 1,435,810 |
| ROE | 65.67% | — | -130.94% | -78.28% | 13.33% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $188,200K ÷ $286,600K
= 65.67%
Cinemark Holdings Inc's return on equity (ROE) has exhibited significant fluctuations over the past five years. In 2023, the ROE improved significantly to 59.68%, indicating a strong profitability and efficiency in generating returns for shareholders. This is a positive sign compared to the negative ROE figures in the preceding years.
The negative ROE observed in 2022, 2021, and 2020 (-71.77%, -129.06%, and -77.74% respectively) reflects challenges in generating profits relative to shareholders' equity during those periods. These negative ROE figures suggest that the company was not utilizing its equity efficiently to generate profits for its shareholders.
In contrast, the positive ROE of 13.25% in 2019 suggests that the company was able to effectively utilize its equity to generate profits for its shareholders in that particular year.
Overall, the fluctuating trend in Cinemark Holdings Inc's ROE indicates a variable performance in terms of generating returns on equity for its shareholders over the past five years. It's essential for investors to monitor future ROE figures to assess the company's ability to generate profits relative to shareholders' equity.