Cinemark Holdings Inc (CNK)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | — | — | 11.72 | 2.90 | 36.21 | |
| DSO | days | — | — | 31.15 | 126.01 | 10.08 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —
Cinemark Holdings Inc's Days of Sales Outstanding (DSO) have fluctuated over the past five years. In 2019, the DSO was notably low at 9.76 days, indicating that the company was efficient in collecting its accounts receivable. However, there was a significant increase to 101.27 days in 2020, suggesting a delay in collecting payments from customers, which could be concerning for the company's liquidity and cash flow.
Subsequently, there was a substantial improvement in 2021 and 2022, with DSO decreasing to 27.90 days and 24.91 days, respectively. This indicates that Cinemark managed to streamline its accounts receivable collection process during those years. The latest DSO figure for 2023 stands at 16.32 days, further demonstrating the company's effectiveness in converting credit sales into cash.
Overall, Cinemark Holdings Inc's DSO trend reflects fluctuations in its accounts receivable management efficiency over the years, with efforts to optimize collection processes yielding positive results in recent periods.