Cinemark Holdings Inc (CNK)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | — | — | — | — | — | — | — | — | — | 24.61 | 19.17 | 17.17 | 11.72 | 10.95 | 6.18 | 1.08 | 3.45 | 12.39 | 15.58 | 39.35 | |
| DSO | days | — | — | — | — | — | — | — | — | — | 14.83 | 19.04 | 21.26 | 31.15 | 33.32 | 59.01 | 336.92 | 105.82 | 29.46 | 23.43 | 9.27 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —
The days of sales outstanding (DSO) is a measure that indicates the average number of days it takes for a company to collect payment from its customers after making a sale. It is calculated by dividing accounts receivable by average daily sales.
Analyzing the DSO trend of Cinemark Holdings Inc from March 2020 to June 2022, we observe the following:
1. There was a significant increase in DSO from March 31, 2020, to March 31, 2021, reaching an alarming level of 336.92 days. This indicates that Cinemark faced challenges in collecting payments from customers, leading to a prolonged collection period.
2. Subsequently, there was a notable improvement in DSO from March 31, 2021, to June 30, 2022, with the metric decreasing gradually to 19.04 days by June 30, 2022. This improvement suggests that Cinemark enhanced its collections process and managed to reduce the average collection period.
3. Despite the improvement, Cinemark's DSO remained relatively volatile during the period, fluctuating between the highs and lows. This volatility may indicate varying payment behaviors of customers or changes in the company's sales mix over time.
4. It is crucial for Cinemark to continue monitoring its DSO closely to ensure efficient credit management and timely collection of receivables. Maintaining a lower DSO indicates better liquidity and operational efficiency in the company's revenue collection process.
Overall, the DSO analysis highlights the importance of effective accounts receivable management for Cinemark Holdings Inc to optimize cash flow and enhance financial performance.