Cinemark Holdings Inc (CNK)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 94,700 | 241,400 | 424,538 | 438,242 | 650,502 |
| Inventory | US$ in thousands | 23,300 | 23,700 | 15,500 | 12,593 | 21,686 |
| Inventory turnover | 4.06 | 10.19 | 27.39 | 34.80 | 30.00 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $94,700K ÷ $23,300K
= 4.06
Cinemark Holdings Inc's inventory turnover has fluctuated over the last five years, ranging from a low of 18.70 in 2020 to a high of 55.81 in 2019. The inventory turnover ratio indicates how efficiently the company is managing its inventory.
A higher turnover ratio suggests that the company is selling its inventory quickly, which is generally positive as it reduces the risk of obsolete inventory and indicates strong sales. Conversely, a lower turnover ratio may indicate slow-moving inventory or overstocking, which could tie up working capital and lead to potential obsolescence or carrying costs.
Cinemark's inventory turnover has generally been improving, with a notable spike in 2019 followed by some fluctuations in the following years. This improvement suggests that the company has been more effective in managing its inventory levels and converting inventory into sales in recent years.
Overall, the increasing trend in Cinemark's inventory turnover indicates improved efficiency in managing its inventory, which can positively impact the company's profitability and financial performance in the long run.