Cinemark Holdings Inc (CNK)
Fixed asset turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,234,700 | 2,768,400 | 2,582,100 | 2,379,800 | 2,231,500 | 2,407,057 | 2,153,212 | 1,706,333 | 1,352,964 | 823,049 | 461,972 | 214,925 | 656,796 | 1,347,357 | 2,104,323 | 3,027,775 | 3,203,277 | 3,212,950 | 3,144,471 | 3,067,433 |
| Property, plant and equipment | US$ in thousands | 1,161,700 | 2,173,400 | 2,238,300 | 2,271,900 | 1,232,100 | 1,260,000 | 1,296,000 | 1,349,000 | 1,382,900 | 1,435,470 | 1,492,560 | 1,533,300 | 1,615,060 | 1,615,060 | 1,602,720 | 1,658,320 | 1,735,250 | 1,682,400 | 1,716,650 | 1,724,450 |
| Fixed asset turnover | 2.78 | 1.27 | 1.15 | 1.05 | 1.81 | 1.91 | 1.66 | 1.26 | 0.98 | 0.57 | 0.31 | 0.14 | 0.41 | 0.83 | 1.31 | 1.83 | 1.85 | 1.91 | 1.83 | 1.78 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,234,700K ÷ $1,161,700K
= 2.78
Cinemark Holdings Inc's fixed asset turnover has shown a general increasing trend over the past eight quarters, indicating a more efficient utilization of fixed assets to generate revenue. The fixed asset turnover ratio measures how effectively the company is using its fixed assets to generate sales, with a higher ratio reflecting better asset utilization.
In the most recent quarter, Q4 2023, the fixed asset turnover ratio reached 2.64, the highest among the data points provided. This indicates that for every dollar of fixed assets, the company generated $2.64 in revenue during that period. The consistent improvement in the ratio from Q1 2022 to Q4 2023 suggests that Cinemark Holdings Inc has been able to increase sales relative to its investment in fixed assets.
The company's ability to generate more revenue from its fixed assets can be attributed to various factors such as efficient use of theaters, effective cost management, and strategic investments in technology and infrastructure. The increasing trend in fixed asset turnover is a positive sign of operational efficiency and could potentially lead to improved profitability and shareholder value in the long term.