Cinemark Holdings Inc (CNK)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,984,100 | 3,076,300 | 2,994,200 | 3,202,300 | 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 |
| Property, plant and equipment | US$ in thousands | 1,145,100 | — | — | — | 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 |
| Fixed asset turnover | 2.61 | — | — | — | 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 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,984,100K ÷ $1,145,100K
= 2.61
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. It is calculated by dividing net sales by average fixed assets.
Analyzing the fixed asset turnover of Cinemark Holdings Inc from March 2020 to December 2024, we observe fluctuations in the ratio over time. The ratio started at 1.83 in March 2020 and dropped to 0.41 by December 2020, indicating a decrease in the efficiency of utilizing fixed assets to generate revenue. This trend continued until March 2021, with the ratio reaching a low of 0.14.
From June 2021, there was a gradual improvement in the ratio, and it reached 1.66 by June 2022, indicating a better utilization of fixed assets to generate revenue. The ratio peaked at 2.78 by December 2023, showing a significant improvement in efficiency. However, the ratio was not available for the subsequent periods in 2024.
The fluctuation in the fixed asset turnover ratio of Cinemark Holdings Inc suggests varying levels of efficiency in utilizing fixed assets to generate sales during the period under review. Investors and stakeholders may further investigate the reasons behind these fluctuations to assess the company's operational efficiency and asset management practices.