Cinemark Holdings Inc (CNK)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,056,400 | 3,234,700 | 2,299,400 | 1,352,960 | 551,574 |
| Property, plant and equipment | US$ in thousands | 1,145,100 | 1,161,700 | 1,232,100 | 1,382,900 | 1,615,060 |
| Fixed asset turnover | 2.67 | 2.78 | 1.87 | 0.98 | 0.34 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,056,400K ÷ $1,145,100K
= 2.67
The fixed asset turnover ratio for Cinemark Holdings Inc has shown a significant improvement over the past five years. Starting at 0.34 in December 31, 2020, the ratio has steadily increased to 0.98 in December 31, 2021, further rising to 1.87 in December 31, 2022. The trend continued with a substantial jump to 2.78 in December 31, 2023, indicating that the company is generating more revenue relative to its investment in fixed assets. However, there was a slight dip in the ratio to 2.67 in December 31, 2024. Overall, the increasing trend in the fixed asset turnover ratio suggests that Cinemark Holdings Inc has been utilizing its fixed assets more efficiently to generate sales, which is a positive indicator of operational performance and asset utilization.