Gross Margin % is calculated as gross profit divided by its revenue. Cinemark Holdings's Gross Profit for the
three
months ended in Dec. 2023 was $419 Mil. Cinemark Holdings's Revenue for the
three
months ended in Dec. 2023 was $639 Mil. Therefore, Cinemark Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 65.55%.
The historical rank and industry rank for Cinemark Holdings's Gross Margin % or its related term are showing as below:
CNK'
s Gross Margin % Range Over the Past 10 Years
Min: 61.73 Med: 63.25 Max: 66.04
Current: 64.56
During the past 13 years, the highestGross Margin % of Cinemark Holdings was 66.04%. The lowest was 61.73%. And the median was 63.25%.
CNK's Gross Margin % is ranked better than 79.46% of 964
companies
in the Media - Diversified industry
Industry Median: 38.555
vs CNK: 64.56
Cinemark Holdings had a gross margin of 65.55% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Cinemark Holdings was 0.50% per year.
Cinemark Holdings Gross Margin % Historical Data
The historical data trend for Cinemark Holdings's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Cinemark Holdings's Gross Margin %
For the Entertainment subindustry, Cinemark Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Cinemark Holdings's Gross Margin % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Cinemark Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Cinemark Holdings's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Cinemark Holdings had a gross margin of 65.55% for the quarter that ended in Dec. 2023 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Cinemark Holdings Gross Margin % Related Terms
Thank you for viewing the detailed overview of Cinemark Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Cinemark Holdings (Cinemark Holdings) Business Description
Cinemark Holdings Inc is geographically diverse operators in the motion picture exhibition industry in the United States. The company operates in around 518 theatres and 5,847 screens in the United States and Latin America. The company generates revenue from filmed entertainment box office receipts and concession sales, with additional revenue from screen advertising, screen rental and other revenue streams, such as transactional fees, vendor marketing promotions, studio trailer placements, meeting rentals and electronic video games located in some of the theatres. Majority of Cinemark's theaters are located in midsize cities or suburbs of large cities.
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