Cinemark Holdings Inc (CNK)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	92,500	140,000	153,200	384,500	505,600	527,390	625,884	472,923	419,591	439,440	400,864	352,659	430,864	424,634	524,792	650,986	645,428	652,239	609,398	589,833
Inventory	US$ in thousands	23,300	26,900	27,500	21,900	23,700	19,600	20,300	16,800	15,500	15,244	14,440	12,170	12,593	15,159	15,584	17,972	21,686	19,346	21,761	18,142
Inventory turnover		3.97	5.20	5.57	17.56	21.33	26.91	30.83	28.15	27.07	28.83	27.76	28.98	34.21	28.01	33.68	36.22	29.76	33.71	28.00	32.51

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $92,500K ÷ $23,300K
= 3.97

Cinemark Holdings Inc's inventory turnover ratio has shown fluctuations over the past eight quarters. The inventory turnover ratio measures how efficiently a company is managing its inventory by indicating how many times in a year the company sells and replaces its inventory.

In Q4 2023, the inventory turnover ratio was 46.65, indicating that Cinemark Holdings Inc converted its inventory into sales approximately 46.65 times during that quarter. This represents an increase from the previous quarter's ratio of 40.17 in Q3 2023.

Looking back over the last several quarters, Cinemark's inventory turnover has shown a generally increasing trend, with some fluctuations. The ratio ranged from a low of 26.58 in Q1 2022 to a high of 46.65 in Q4 2023. This suggests that the company may have improved its inventory management practices and is becoming more efficient in selling and replacing its inventory.

A high inventory turnover ratio typically indicates efficient inventory management, as the company is selling its goods quickly. However, it's important to also consider industry norms and compare the ratio to competitors to assess whether Cinemark is performing optimally.

Overall, based on the inventory turnover trend observed in the given data, Cinemark Holdings Inc appears to have shown improvements in inventory management efficiency, which may positively impact its profitability and cash flow.