Cinemark Holdings current probability of bankruptcy is under 33.0 percent

Today we will covere Cinemark Holdings. Cinemark Holdings, Inc., together with its subsidiaries, engages in the motion picture exhibition business. Cinemark Holdings, Inc. was incorporated in 2006 and is headquartered in Plano, Texas. Cinemark Holdings operates under Media - Diversified classification in USA and traded on BATS Exchange. It employs 11729 people.. Cinemark Holdings current probability of bankruptcy is under 33.0 percent. The firm reported last year revenue of 2.99 B. Total Income to common stockholders was 245.21 M with profit before taxes, overhead, and interest of 1.5 B.
Published over a year ago
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Reviewed by Vlad Skutelnik

This company has 2.06 B in debt with debt to equity (D/E) ratio of 139.6 . This implies that Cinemark Holdings may be unable to create cash to meet all of its financial commitments. Cinemark Holdings currently falls under 'Mid-Cap' category with total capitalization of 4.3 B.

How important is Cinemark Holdings's Liquidity

Cinemark Holdings financial leverage refers to using borrowed capital as a funding source to finance Cinemark Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cinemark Holdings financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Cinemark Holdings' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Cinemark Holdings' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Cinemark Holdings's total debt and its cash.

Cinemark Holdings Gross Profit

Cinemark Holdings Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Cinemark Holdings previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Cinemark Holdings Gross Profit growth over the last 10 years. Please check Cinemark Holdings' gross profit and other fundamental indicators for more details.

Breaking it down a bit more

The company has 2.06 B in debt with debt to equity (D/E) ratio of 139.6 . This implies that the company may be unable to create cash to meet all of its financial commitments. Cinemark Holdings has Current Ratio of 1.5 which is typical for the industry and considered as normal. Cinemark Holdings preserves 11.73 k of number of employees. Cinemark Holdings is trading at 40.12 which is 1.06 percent increase. Started trading at 39.7.

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When determining whether Cinemark Holdings is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Cinemark Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Cinemark Holdings Stock. Highlighted below are key reports to facilitate an investment decision about Cinemark Holdings Stock:
Check out Cinemark Holdings Hype Analysis, Cinemark Holdings Correlation and Cinemark Holdings Performance.
For more information on how to buy Cinemark Stock please use our How to buy in Cinemark Stock guide.
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When running Cinemark Holdings' price analysis, check to measure Cinemark Holdings' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cinemark Holdings is operating at the current time. Most of Cinemark Holdings' value examination focuses on studying past and present price action to predict the probability of Cinemark Holdings' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cinemark Holdings' price. Additionally, you may evaluate how the addition of Cinemark Holdings to your portfolios can decrease your overall portfolio volatility.
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Is Cinemark Holdings' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cinemark Holdings. If investors know Cinemark will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cinemark Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.38)
Earnings Share
1.34
Revenue Per Share
25.749
Quarterly Revenue Growth
0.065
Return On Assets
0.0481
The market value of Cinemark Holdings is measured differently than its book value, which is the value of Cinemark that is recorded on the company's balance sheet. Investors also form their own opinion of Cinemark Holdings' value that differs from its market value or its book value, called intrinsic value, which is Cinemark Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cinemark Holdings' market value can be influenced by many factors that don't directly affect Cinemark Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cinemark Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if Cinemark Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cinemark Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.