Cinemark Holdings Inc (CNK)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 67,700 | -470,100 | -373,100 | -187,200 | -112,900 | 335,389 | 220,406 | 6,806 | -289,894 | -621,125 | -804,602 | -944,695 | -796,328 | -440,688 | -138,155 | 263,420 | 371,239 | 386,790 | 409,958 | 374,803 |
| Long-term debt | US$ in thousands | — | — | — | — | — | 2,473,500 | 2,474,900 | 2,476,600 | 2,476,300 | 2,477,260 | 2,478,630 | 2,476,680 | 2,377,160 | 2,366,380 | 2,117,290 | 1,869,820 | 1,771,340 | 1,771,660 | 1,771,980 | 1,772,300 |
| Total stockholders’ equity | US$ in thousands | 286,600 | 292,300 | -474,900 | -479,200 | -485,200 | 194,800 | 208,000 | 286,300 | 322,900 | 304,136 | 387,158 | 513,589 | 787,973 | 1,007,030 | 1,086,920 | 1,253,280 | 1,435,810 | 1,483,700 | 1,515,280 | 1,451,940 |
| Return on total capital | 23.62% | -160.83% | — | — | — | 12.57% | 8.22% | 0.25% | -10.36% | -22.33% | -28.08% | -31.59% | -25.16% | -13.06% | -4.31% | 8.43% | 11.58% | 11.88% | 12.47% | 11.62% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $67,700K ÷ ($—K + $286,600K)
= 23.62%
Cinemark Holdings Inc's return on total capital has shown a positive trend in recent quarters, increasing from -4.12% in Q1 2022 to 13.42% in Q4 2023. This suggests that the company has been more effective in generating profits relative to its capital employed. The consistent improvement in return on total capital indicates better utilization of resources and efficiency in operations. This positive trend signifies that Cinemark Holdings Inc is making strides in enhancing profitability and maximizing shareholder value through effective capital management.