Cinemark Holdings Inc (CNK)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 67,700 | -112,900 | -289,900 | -796,300 | 371,239 |
| Long-term debt | US$ in thousands | — | — | 2,476,300 | 2,377,160 | 1,771,340 |
| Total stockholders’ equity | US$ in thousands | 286,600 | -485,200 | 322,900 | 787,973 | 1,435,810 |
| Return on total capital | 23.62% | — | -10.36% | -25.16% | 11.58% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $67,700K ÷ ($—K + $286,600K)
= 23.62%
Cinemark Holdings Inc's return on total capital has exhibited fluctuations over the past five years. The ratio was highest in 2023 at 13.42%, indicating that the company generated a return of 13.42 cents for every dollar of total capital employed. This positive trend is a significant improvement compared to the negative returns recorded in 2020 and 2021, wherein the company experienced -8.49% and -18.34% returns, respectively. The return on total capital in 2022 was significantly lower at 2.70%. The company's performance rebounded in 2019, with a return of 13.71%. Overall, while Cinemark Holdings Inc's return on total capital has shown volatility, the recent positive trend in 2023 is a promising indication of the company's improved efficiency in generating returns relative to the capital invested.