Cinemark Holdings Inc (CNK)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	63,900	85,200	83,400	91,800	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
Inventory	US$ in thousands	31,000	29,300	26,500	23,700	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
Inventory turnover		2.06	2.91	3.15	3.87	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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $63,900K ÷ $31,000K
= 2.06

The inventory turnover ratio for Cinemark Holdings Inc has shown a declining trend over the analyzed period. Starting at 36.22 in March 2020, the ratio decreased steadily to reach 2.06 by December 2024. This indicates that the company's inventory is being sold at a slower rate relative to the level of inventory held.

A high inventory turnover ratio is generally favorable as it signifies efficient management of inventory, whereas a decreasing ratio could indicate potential issues such as overstocking, slow sales, or obsolete inventory. In the case of Cinemark Holdings Inc, the declining inventory turnover ratio may suggest that the company is facing challenges in effectively managing its inventory levels or is experiencing slower sales growth.

It is essential for the company to closely monitor and address the factors contributing to the declining inventory turnover ratio to optimize inventory management practices and improve overall operational efficiency.