Cinemark Holdings Inc (CNK)
Days of inventory on hand (DOH)
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Inventory turnover | 2.06 | 4.06 | 10.19 | 27.39 | 34.80 | |
DOH | days | 177.07 | 89.80 | 35.83 | 13.33 | 10.49 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.06
= 177.07
The days of inventory on hand (DOH) for Cinemark Holdings Inc has shown an upward trend over the five-year period from December 31, 2020, to December 31, 2024. Starting at 10.49 days in 2020, the DOH increased steadily to 13.33 days in 2021, further rising to 35.83 days in 2022, and significantly escalating to 89.80 days in 2023. By December 31, 2024, the DOH reached its peak at 177.07 days.
This increasing trend in DOH indicates that Cinemark Holdings Inc's ability to sell its inventory efficiently has deteriorated over the years. A higher DOH value suggests that the company is taking longer to turn its inventory into sales, which could potentially lead to higher holding costs, inventory obsolescence, and reduced profitability. Further analysis is recommended to assess the underlying reasons for this substantial increase in DOH and to evaluate its implications for the company's operations and financial performance.