Cinemark Holdings Inc (CNK)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -751,800 | 1,233,400 | 283,800 | 127,900 | 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 |
| 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 |
| Total stockholders’ equity | US$ in thousands | -528,300 | -502,000 | -510,500 | -498,200 | 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 |
| 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-751,800K ÷ ($—K + $-528,300K)
= —
Cinemark Holdings Inc's return on total capital has exhibited significant fluctuations over the reported periods. As of March 31, 2020, the company had a return on total capital of 8.43%, indicating a reasonable profitability compared to the invested capital. However, this metric turned negative in the subsequent quarters, reaching its lowest point at -31.59% by March 31, 2021.
The negative trend continued through June and September 2021, with return on total capital deteriorating further to -28.08% and -22.33%, respectively. By December 31, 2021, the metric improved to -10.36%, reflecting a slight recovery.
The company's return on total capital then gradually improved, reaching 12.57% by September 30, 2022, suggesting a more favorable performance relative to capital employed. Notably, by December 31, 2023, the return on total capital sharply decreased to -160.83%, indicating significant challenges faced by the company in generating returns on its total capital.
However, the metric rebounded strongly by December 31, 2023, with a return on total capital of 23.62%. Following this improvement, the data for the subsequent periods is not available.
Overall, the erratic nature of Cinemark Holdings Inc's return on total capital reflects the impact of various factors on the company's profitability and efficiency in utilizing its total capital during the reported periods.