Cinemark Holdings Inc (CNK)
Days of inventory on hand (DOH)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 2.06 | 2.91 | 3.15 | 3.87 | 3.97 | 5.20 | 5.57 | 17.56 | 21.33 | 26.91 | 30.83 | 28.15 | 27.07 | 28.83 | 27.76 | 28.98 | 34.21 | 28.01 | 33.68 | 36.22 | |
| DOH | days | 177.07 | 125.52 | 115.98 | 94.23 | 91.94 | 70.13 | 65.52 | 20.79 | 17.11 | 13.56 | 11.84 | 12.97 | 13.48 | 12.66 | 13.15 | 12.60 | 10.67 | 13.03 | 10.84 | 10.08 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.06
= 177.07
The days of inventory on hand (DOH) is a metric used to assess how efficiently a company manages its inventory. Cinemark Holdings Inc's DOH has shown some fluctuations over the years. In March 2020, the DOH was 10.08 days, indicating that the company held its inventory for about 10 days before selling it. The DOH increased slightly to 10.84 days by June 2020 and further to 13.03 days by September 2020.
However, the trend reversed in subsequent periods, with the DOH decreasing to 10.67 days by December 2020 and then fluctuating in the range of 10 to 13 days until September 2021. A notable increase was observed in December 2021, with the DOH reaching 13.48 days, suggesting a potential buildup in inventory levels.
The DOH continued to fluctuate around the 12-13 days range until March 2023 when a significant spike occurred, increasing to 20.79 days. Subsequently, the DOH rose significantly in the following periods, exceeding 90 days by December 2023. The trend continued, with the DOH reaching 177.07 days by December 2024, indicating an extended period of holding inventory.
Overall, the increasing trend in Cinemark Holdings Inc's DOH in recent years suggests potential issues with inventory management, such as overstocking or slower inventory turnover. This may warrant further investigation into the company's supply chain and inventory control practices to optimize operational efficiency and cost management.