Cinemark Holdings Inc (CNK)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,234,700 | 2,299,400 | 1,352,960 | 551,574 | 3,179,760 |
| Property, plant and equipment | US$ in thousands | 1,161,700 | 1,232,100 | 1,382,900 | 1,615,060 | 1,735,250 |
| Fixed asset turnover | 2.78 | 1.87 | 0.98 | 0.34 | 1.83 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,234,700K ÷ $1,161,700K
= 2.78
The fixed asset turnover ratio for Cinemark Holdings Inc has exhibited significant variability over the past five years. There has been a consistent improvement in the ratio from 2019 to 2023, indicating that the company has become more efficient in generating revenue from its fixed assets.
In 2023, the fixed asset turnover ratio reached 2.64, indicating that for every dollar invested in fixed assets, Cinemark generated $2.64 in revenue. This represents a notable increase from the ratio of 1.99 in 2022 and a substantial improvement from the ratio of 0.42 in 2020.
The consistent improvement in the fixed asset turnover ratio reflects Cinemark's efforts to optimize the utilization of its fixed assets to drive revenue growth. This trend is indicative of increased operational efficiency and better asset management within the company.
Overall, the upward trajectory of Cinemark's fixed asset turnover ratio suggests positive operational performance and effective capital allocation strategies, which have contributed to the company's ability to generate higher revenue from its fixed asset base.